Investor CRM Software & Why Should You Have One

A progression of a company or a startup beyond a certain point in its life is determined by the amount of investment it gains from outside parties. This is why companies put in a lot of effort into gaining in the interest of investors. However, the task of finding investors is not easy, as their high-profile outlook makes it harder for small businesses to reach them. Besides, the process of finding the right investor, communicating the idea and establishing the deal flow process itself is exhaustive.

However, this scenario can be turned around with the help of investor client relationship management (CRM) software. 

The Purpose of Investor CRM Software

The function of investor CRM software is simple: to connect companies/start-ups with the right investors and help raise funds more quickly and efficiently.

With the conventional way of searching for investors, there are several factors that hinder productivity. These often include:

  • Lack of awareness: The numbers of people and organizations that invest in new businesses and ideas are plenty. However, not every investor will be interested in your idea. This is where it becomes difficult to discover the investors that are actually interested to pour money in your specific niche.
  • Heavy research: You might end up spending months finding and talking to a lot of investors in order to filter out the ones who are actually interested in your business niche.
  • Significant time wastage: Such intensive research translates to a massive delay in getting your product or service out as soon as possible.
  • Monetary loss: In fast-paced commerce, time is money. With extended time, you are losing out on revenue and spending more amount on the resources without even securing an income on investment stream.

Investor CRM software enables startups to speed up the fundraising and marketing efforts with better investor communication, powerful deal flow process and efficient tracking.

Why Invest in Investor CRM Software?

Here are some the most important functions of an investor CRM:

  • Search and Find investors: It is a great way for up and coming businesses or even seasoned ones to get acquainted with investors around the world. With reputed investor CRM software, the investor database will already have a list of prime investors, and this list constantly gets updated to incorporate changes.  
  • Niche Segregation: The next best thing about investor CRM is that they will have the list of investors divided based on the niches of interest. Hence, you will have the list of investors who have the same interests that align well with your business. Also, there are investors who have their funds spread across various niches; they should be also on your list of prospects.
  • Investor Contact Information: Knowing just the names of investors isn’t enough for a successful marketing campaign. To have them on board the project, you first need to have their contact information. That is the starting point of the whole marketing pitch. Investor CRM software provides genuine contact information of investors to connect with them. This valuable data is often hard to get otherwise, and you may have to research hours to get potential leads. With investor CRM, it's just a click away.
  • Custom Lists and Follow-Ups: Reputable investor CRM software often provides a massive database of investors to whom you can pitch your idea. However, targeting each one of them might not be an effective approach, and hence a list building suite is necessary. Also, prompt follow-ups are crucial to let the investors know that you are completely vested in this deal. Hence, the follow-up feature is very useful in getting investors on board.
  • Deal Pipeline Tracking: One of the valuable features of an investor CRM suite is it allows you to efficiently track the deal pipeline and fundraising process. This makes it easy for you to understand in detail about the deal flow and helps in maintaining transparency with your investors.

Integrating other business-critical apps such as document management, business phone systems, project management tools and email clients with your investor CRM further enhances the productivity of your startup. It essentially helps you with raising capital more efficiently while managing healthy investor relations.

The real emphasis of investor CRM software is convenience. The process of finding leads is certainly an arduous job. Also, conversing with investors who are not interested in your niche is unproductive. Investor CRM software cuts down on time and effort that is needed to find an investor who might be genuinely interested in the project that you do.

Enhance Productivity With the Right Solutions

It is important to select investor CRM software that meets your business specific requirements. Apart from providing a huge database of investors, it is necessary to look for other features that can ascertain productivity across your fundraising campaigns. In addition, seamless integration with your key business applications is also essential to unlocking the full potential of your investor CRM.

Your cloud provider and available features set directly affects your relationships with your clients, which directly affect your business' bottom line. Choose a superior cloud system and ensure that this effect is for the better. Fill out our online form today or call us at 1-866-879-8647 to request a no-obligation quote from an 8x8 Product Specialist.

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