Best practices for lining up equity investors pre-LOI — and where to find them?

searcher profile

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.
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commentor profile
Reply by a searcher
in Raleigh, NC, USA
Marc, I almost always default to networking for most questions that start with "how do I find .....". Take as many opportunities to network as you can stomach. The ones where it seem you may not fit in will give you an opportunity to stand out. Travel if you can to attend regional events. Charlotte has a robust finance and investment scene. Wilmington has amazing events focused on startups, tech and finance. Charleston has a good finance base. Greenville SC is a very welcoming start up and entrepreneur-friendly networking scene. Locally, attend some TREIA events. Its real estate centered but there is a lot of money there and you will have great conversations.
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Reply by an investor
from Duke University in Austin, TX, USA
I would recommend deciding on what type of companies you are looking to buy and the size range. From there you can estimate the amount of equity you will need. Then decide on the deal structure you will propose between you and the investors. From there you can efficiently build relationships with investors that find you deal terms, company size and company type acceptable. Investor are all over the board on what they like to invest in. You want to target the ones that have the highest probability to invest in the type of the deal you are going to buy. This approach will make your networking more efficient.
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