Razzak Jallow, the CFO of pre-IPO fintech company FloQast, shares his insights on how to build a solid investor portfolio. He stresses the importance of selecting the right investor firms and partners, as they can provide not only the necessary funding but also long-term relationships essential for company success. Jallow provides five key tips for companies of all stages to consider when building their investor portfolio.
First and foremost, Jallow advises companies to put themselves out there and meet as many investors as possible, especially in the early stages of scaling. Attending investor conferences is a great way to connect with potential investors and find the best fit for your company. However, it is crucial to narrow down the pool of investors to find those aligned with your company’s goals and vision.
Strategic alignment is paramount when choosing the right investor partner. It is essential to find investors who believe in your company and its ability to navigate the future challenges ahead. Jallow emphasizes that the alignment must not only be with the partner investing but also with the firm as a whole to avoid potential conflicts or challenges down the line.
Beyond strategic alignment, Jallow advises companies to determine the best type of investor that can provide the necessary help and support in the next growth stage of the company. Whether it is operational excellence, portfolio benchmarking, or further fundraising opportunities, selecting investors who can benefit the company is key to long-term success.
Transparency and trust are the building blocks of a good investor relationship. Jallow stresses the importance of being honest and transparent with investors, as it can help attract the right partners and strengthen existing relationships. Trust and familiarity go a long way in finalizing investment rounds and agreeing on terms, so clear and open communication is crucial throughout the entire process.
Lastly, Jallow recommends benchmarking investors to ensure they are the right fit for the company. By evaluating metrics and past experiences, companies can determine if an investor’s insights and knowledge are applicable to their specific funding round. Building and maintaining the right investor portfolio is a journey filled with rejection, connections, and growth, but with the right relationships, companies can achieve short-term and long-term goals for overarching success.
