Best practices for lining up equity investors pre-LOI — and where to find them?
December 13, 2025
by a searcher from Babson College - F.W. Olin Graduate School in Chapel Hill, NC, USA
I recently heard advice on a search podcast that it’s smart to start building relationships with potential equity investors before you have an LOI in hand, so that once a deal comes together you’re not starting from zero.
Conceptually this makes sense, but I’m curious how people here have done this in practice — especially where to actually find these investors at the pre-LOI stage without being overly speculative or wasting anyone’s time.
A few specific questions I’d love input on:
• Where have you found pre-LOI equity investors (Searchfunder, warm intros, former operators, angels, small PE, search-specific funds, etc.)?
• What’s the right framing when reaching out pre-LOI — general background + search criteria, or something more concrete?
• How do you vet investor fit early (check size, decision speed, risk tolerance) without a deal to anchor the conversation?
• Did you formalize anything (soft commitments, target check size ranges), or keep it strictly informal until LOI?
I’m not trying to raise capital yet — more looking to build a short list of investors who understand my search thesis and could move quickly if/when a deal comes together.
Would love to hear what’s worked (or not worked) for others.
from Dartmouth College in Garden Grove, CA, USA