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What traits should natural entrepreneurs seek in investor partners? 53597What traits should natural entrepreneurs seek in investor partners? 53597
So, you're considering raising outside capital for your natural business. Who is your ideal investor? Search out these six characteristics.
Alliance Consumer Growth
February 15, 2013
1 Min Read
The co-founders of leading consumer-focused private equity firm Alliance Consumer Growth (ACG)—investors in EVOL Foods, Krave Jerky, The Honest Kitchen, and BabyGanics—answer questions from natural products entrepreneurs.
Q: What traits should natural entrepreneurs seek in investor partners?
A: These six characteristics can help you find the right investor for your natural company.
Industry Focus: An investor who specializes in the natural products industry will be able to add much more value than a generalist investor who dabbles across different industries.
More Than Just Money: Professional investors can bring experienced, hands-on help with consumer and trade marketing, product development, operations, finance and team building.
Professional Partner: In addition to a tool box of industry specific resources, professional investment funds bring: a portfolio of other companies going through similar stage of growth who can also be resources; and committed capital (meaning if they say they’re investing, you have certainty of the deal closing).
Alignment of Time Horizon: Professional investors will want an exit or liquidity event at some point so they can return capital to their limited partners. Make sure that your time horizon is aligned with theirs.
People You Like and Trust: It's a relationship and you're going to be spending time together. Check the investor's references and speak to their other portfolio company CEO's.
People Who Trust You: Be leery of someone who needs to own a majority stake of your business. It means they may inherently trust their own decision making more than yours.
Have a question for ACG? Email them and they may reply here on newhope360.
About the Author
From left to right, Trevor Nelson, Julian Steinberg and Josh Goldin of Alliance Consumer Growth.
Alliance Consumer Growth (ACG) is a private equity fund which provides growth capital and value-added partnership to the most promising young consumer and retail brands.
ACG invests in differentiated, high-growth companies with at least $5 million in annual sales, that are seeking $2 to $10 million of growth capital. Post-investment, ACG partners closely with founders and management teams to develop brand-building strategies, leveraging our network of industry resources to help businesses grow and create durable value.
Current investments include BabyGanics, The Honest Kitchen, EVOL Foods and KRAVE Jerky.
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