Investors: practical guides and steps

Investors provide equity in exchange for a share of the capital or a future return. They often fund what a bank will not carry alone. This page helps founders find the right investors and prepare a credible funding round.

Which investors for which project?

Not all investors look alike. Each profile expects a different level of risk and a different horizon.

• Family and friends, often the first circle at launch.
• Business angels, who bring capital, networks and experience.
• Investment funds, public or private, for larger amounts.
• Crowdfunding, which mobilises many small contributors.
• Private individuals attracted by a tax benefit.

In Belgium, regional funds also invest alongside private players. Moreover, the FSMA supervises public offers and crowdfunding platforms. So always check a platform's status before presenting your project there.

What investors examine

An investor does not fund a mere idea. They back a team able to execute a plan. Their questions focus on a few precise points.

• The strength and complementarity of the team.
• Market size and competition.
• A clear business model that turns profitable over time.
• A credible forecast, with a cautious scenario.
• The proposed valuation and the dilution you accept.
• Exit prospects in the medium term.

Your figures must stand up to these questions. Our financial forecasting method helps you build them. To avoid classic weaknesses, also read the mistakes that weaken a funding application. These mistakes worry a banker just as much as investors.

Structuring the entry into capital

The arrival of investors changes the company's governance. A capital increase brings in the funds. Our article on the capital increase explains the procedure. A shareholders' agreement then sets the rules: board seats, veto rights, exit clauses. Prepare it with our article on shareholders' agreements.

The legal form matters too. The SA traditionally eases the entry of many shareholders. The SRL, however, offers wide freedom to create shares with different rights. Compare both in our SRL or SA article.

Common pitfalls in a funding round

Some mistakes weigh on founders for years. First, many give away too much capital too early. Second, an unrealistic valuation blocks later rounds. In addition, a neglected shareholders' agreement fuels conflict. Finally, some accept money without checking the experience or expectations of their investors.

To attract private individuals, a tax incentive can also make the difference. Discover the tax shelter for investing in young companies. Well chosen investors ultimately bring far more than money: advice, contacts and credibility.