At CBGF, we have helped several companies take the next step in their growth by providing them with minority capital. Unfortunately, we cannot back every entrepreneur we meet, as we must be selective in which entrepreneurs and companies we choose to back. We are not the right fit for all companies, as some may be at a stage too early in their growth journey for CBGF.
Although we may not always be the right fit for an investment today, it doesn’t mean we don’t want to see them succeed or come back to us once they are within our investment criteria. And it doesn’t mean we don’t offer any help at all. In fact, even though some entrepreneurs may not be the right fit right now, we continue to provide advice and support, and even facilitate introductions where possible, so they can improve their business or find a partner that is right for them.
We will often share our advice and expertise on steps they may need to take or areas they may need to think through further, either to come back to us at a later date or to help them on their journey with other investors. Here are some examples:
Unified vision and long-term planning
As investors, we want to see that the management team members have a clear and unified vision for the future of their business. Management teams must be aligned and work collaboratively toward a common goal. This unified front fosters a sense of trust and reassurance for potential investors and helps to build confidence in the company.
Historical performance vs. projected performance
While we love to see entrepreneurs who are excited about the future and sharing their growth plans, it is also important as investors that we see that the company is already well-managed and that entrepreneurs are able to showcase their achievements to date. Oftentimes, we ask entrepreneurs to come back to us after a period of time once they have proven more of their business model or have demonstrated traction and growth in the market. This also helps investors build more trust and confidence in the company when projected performance turns into real performance results.
Projections are also very important, but they must be supported by data and historical trends.
Market dynamics are constantly changing, so entrepreneurs must stay current with the latest industry trends. When entrepreneurs understand the market well, they can make more informed decisions and better capitalize on new opportunities. Thorough market research is key to gaining an edge over the competition.
Adaptability and resilience
Investors are drawn to entrepreneurs who are resilient and who can adapt to the changes and challenges of the business world. Entrepreneurs who demonstrate a willingness to learn from setbacks can build investor confidence in that entrepreneur’s ability to navigate uncertainty.
Transparency and open communication
Honesty and transparency are essential traits for any entrepreneur seeking investment in their company. Open and transparent communication about a business’s successes and challenges fosters trust and credibility. Investors appreciate entrepreneurs who openly share their progress and seek expert feedback and advice.
Strong value proposition
Finally, and perhaps most importantly, an entrepreneur needs to be able to articulate the value proposition of their company. Understanding the needs of their customers and tailoring their offerings accordingly will increase the chances of gaining interest from investors.
At CBGF, we are committed to empowering entrepreneurs. While we cannot back every entrepreneur who approaches us, we always do our best to give them meaningful and useful advice to help them drive success and growth.