How to Find Your "Low Hanging Fruit" Investor Groups

Here’s a quick tip of how to build out your investor universe if you are just getting started with trying to find interested groups for your round.

One of the main things we look for at Breakout when helping on our Capital Advisory offer is who has been in your space before.

The main reason for this is that investors like to invest in patterns.

When they truly know and understand a space it’s easy for them to be confident about deals they see.

How are you as a founder supposed to identify this?

Your competitors.

Look at anyone in your space that is a competitor / similar company / adjacent vertical and look at who came in on their round.

Now look at who followed on to those groups.

A lot of the time you can find patterns as who likes to follow who.

This next example is not real, just used for demonstration purposes:

“When Sequoia came in on a Series B round in your Industrial AI competitor, Alumni and Bolt VC have came in to follow them twice. We can make an inference that they like to follow on rounds in this space.

That makes all of them a potential fit for you.”

You can work backwards using the data for who is likely to be a good fit for what you do based on who invested in your space before, and what their patterns were.

Our favourite way of finding this information is either through:

• Claude

• Metal

It’s extremely easy to go down the rabbit hole of trying to find a million funds who “might” have an interest in your space.

But it’s a lot easier to start with what you already know for sure, and work backwards from there.

If there’s anything we can help with in how you’re currently identifying and engaging investor groups for your current rounds, shoot me an email and I’ll see if I can help.

Thanks for reading and have a great week!

Ryan Bryden
Breakout Capital Group