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

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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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Reply by a searcher
from Dartmouth College in Garden Grove, CA, USA
Marc — a lot of searchers build investor relationships pre-LOI in a very low-pressure way: general background, thesis, and how you think about deals. Investors expect conversations without a live LOI and use them to assess fit. Searchfunder, local ETA meetups, and warm intros from operators in your industry tend to be the best channels. Nothing needs to be formal until you have something concrete.
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