> ## Documentation Index
> Fetch the complete documentation index at: https://docs.metal.so/llms.txt
> Use this file to discover all available pages before exploring further.

# Recommended Process

In a given raise process, the highest leverage activity is to focus on the "*most likely*" investors. With 10,000+ VCs actively writing checks, founders need a data-driven approach to discover investors that are actually likely to lead or join the round. Metal provides founders four primary mechanisms to discover the most likely investors for their Company.

<Columns cols={2}>
  <Column>
    <Card title="AI Search" icon="sliders" href="https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/ai-search" cta="AI Search">
      Use AI or develop a custom search query using precision filters across stage, sector, geography and more.
    </Card>

    <Card title="New Funds" icon="sliders" href="https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/new-funds" cta="New Funds">
      Surface new investors that have recently started a new firm, or that have raised a new fund.
    </Card>
  </Column>

  <Column>
    <Card title="Market Signals" icon="wand-magic-sparkles" href="https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/market-signals" cta="Market Signals">
      Algorithmically scan 1m+ data points to surface investors that publish content aligned with your business model.
    </Card>

    <Card title="Similar Companies" icon="wand-magic-sparkles" href="https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/similar-companies" cta="Similar Companies">
      Seamlessly identify investors that have previously backed companies similar to yours.
    </Card>
  </Column>
</Columns>

***

### Training the Rankings Engine

A recommended starting point is to use Metal's built-in engine that ranks investors based on our internal fit assessment. The rankings engine draws on the information users provide about their Company and on the proprietary intelligence that Metal holds on venture investors.

Our fit scores are determined through an orchestration layer that takes into account your Company's business model, stage, sector, geography and round dynamics. For instance, if you are looking for a lead investor at the Pre-seed stage, and if a given investor doesn't lead at Pre-seed, then the system will assign a low fit score to such an investor.

Founder can "train" the rankings engine by providing Metal with greater context on your Company's business model and overall strategy. Our fit scores become more accurate as Metal better understands your Company. You can equip the platform with rich context by uploading pitch decks, by engaging in conversations with Richard AI, and by integrating your data sources.

***

### [AI Search](https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/ai-search)

In order to identify investors that are a strong-fit for a given raise, users first need to develop an **elimination criteria** -- a set of requirements that qualifies a given investor as a likely target. To develop an elimination criteria, founders need to make the following key decisions.

<Tabs>
  <Tab title="Lead Decision">
    When round size is significant (\$1-2m+), users need a lead investor to bring the round together. The lead investor plays a critical role by: **(a)** Setting the valuation cap for the round, and **(b)** Coalescing other investors to participate. Typically, the lead investor is the first to invest, and does so without waiting for other investors.

    When round size is small (\<\$1m), founders can often structure a "party round" whereby a large number of investors with small check sizes make up the round (without requiring a lead investor). Similarly, companies that are backed by well-known incubators (such as YCombinator or Techstars) are often able to structure large party rounds without necessarily requiring a lead investor.

    <Info>
      For guidelines on how party rounds work, refer to [this section.](https://docs.metal.so/content/resources/party-rounds)
    </Info>

    For users looking to structure party rounds, the focus should be on identifying follow-on investors that write small checks in existing rounds.

    <Tip>
      The lead decision drives the user's decision for the following filters: [Inclination to Lead](https://docs.metal.so/content/high-resolution-identification/general-filters#inclination-to-lead)
    </Tip>
  </Tab>

  <Tab title="Stage Decision">
    For venture-backed companies, each round stage carries a very specific set of expectations (in terms of both round valuation and business progress).

    As an example, pre-seed investors routinely invest in companies that are doing zero (or minimal) revenue, and are pre-product. For pre-seed investors, investing at the idea stage is the norm, and their risk/reward model is built around writing checks at that stage. Seed stage investors, however, rarely invest in companies that do not have significant operating data and revenue growth. Pre-seed and seed investors are, therefore, playing very different games (with most investors specialising in a specific stage).

    <Info>
      For guidance on investor expectations at each stage, refer to [this section here.](https://docs.metal.so/content/resources/round-stages)
    </Info>

    For each round stage, it is important to understand the stage definition and the underlying investor expectations. A common misstep in the fundraising process is when users target and/or engage investors that do not specialise in their stage. This misstep is often coupled together with an ambiguous understanding of the Company's stage.

    <Check>
      The stage decision drives the parameters for the following filter: [Minimum % Investments in Selected Stages](https://docs.metal.so/content/high-resolution-identification/stage-and-sector-filters#understanding-stage-dynamics)
    </Check>
  </Tab>

  <Tab title="Round Size Decision">
    The targeted size of the round significantly impacts the types of investors that users must pursue when finding startup investors

    For small rounds (\$0-1m), there are numerous options – users can put together party rounds consisting of angels and small check VCs. For larger rounds, it may be important to have a lead investor, and that may require a different search criteria.

    <Info>
      For guidance on how to determine round size, refer to [this section here](https://docs.metal.so/content/resources/check-size).
    </Info>

    Specifically, founders raising a round of 2m or higher can target lead investors that have a fund size between 100m to 300m. Users looking to raise a 5-10m round may need to target investors with large fund sizes (higher than 250m).

    <Check>
      The round size decision drives the parameters for the following filter: [Fund Size](https://docs.metal.so/content/high-resolution-identification/general-filters#fund-size-and-lifecycle)
    </Check>
  </Tab>

  <Tab title="Sector Decision">
    Some users may take a broad approach and focus on investors that have previously made investments in their parent sector. Examples would include users looking for investors that are familiar with B2B Software, Healthcare or Consumer.

    Other users may prefer to take a more targeted approach and focus on investors that specialize in a given sub-sector. Examples would include users looking for investors that specialize in biotech or life sciences.

    Prior to identifying investors, it is important to make an intentional decision on whether to go broad at the parent sector level (I.e. investors that are familiar with Fintech or B2B Software), or to go deep on a specific sub-sector (I.e. investors that specialise in robotics or in biotech).

    <Check>
      The sector decision drives the parameters for the following filter: [Sector Familiarity and Sector Concentration](https://docs.metal.so/content/high-resolution-identification/stage-and-sector-filters#understanding-sector-dynamics)
    </Check>
  </Tab>

  <Tab title="Geo Focus">
    Some users may want to identify investors that are familiar with a given continent (I.e. North America, or Europe). Others may want to identify those that have previously invested in certain types of geographies (I.e. Egypt, Bangladesh, Indonesia or Pakistan). It is generally important to determine a specific geo criteria (driven by a clear thesis or rationale).

    As an example, a founder building in Indonesia may look for investors that: **(a)** Have made at least "1" investment in Indonesia, and **(b)** Have made at least 5%+ investments in the broader Asia continent.

    <Check>
      The geo focus decision drives the parameters for the following filter: [Investors by Continent and Investors by Country](https://docs.metal.so/content/high-resolution-identification/geography-filters)
    </Check>
  </Tab>
</Tabs>

***

### [Market Signals](https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/market-signals)

Every day, investors are "talking" about what types of founders or business models they want to fund. This is spread out across millions of data points in the form of podcasts, blog posts, social media posts, and more.

With Market Signals, Metal provides founders a way to "listen" to what investors are saying across the entire web. The platform automatically flags investors that are posting content that shows a strong thesis or belief in the user's product and/or business direction.

<Tip>
  Metal's proprietary intelligence on [Market Signals](https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/market-signals) is purpose-built for the above use case.
</Tip>

***

### [New Funds](https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/new-funds)

Using the new fund insights section within Metal (Insights > New Funds), users can identify investors that have made their first investment in a given sector or sub-sector. Investors that make their first investment in a given space are often interested in identifying more companies that are building in the same space.

New investors that just raised their first fund often have the highest appetite to deploy and the least amount of deal flow, making them excellent prospects as financing partners.

<Tip>
  Metal's proprietary intelligence on [New Funds](https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/new-funds) is particularly useful for founders looking to discover strong-fit. new funds.
</Tip>

***

### [Investors in Similar Companies](https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/similar-companies)

Investors that have invested in similar companies are often the "*most likely*" partners (based on empirical evidence for their interest in similar companies). Such investors can be easily identified by using Metal's "Company Search" module that allows users to:

<Steps>
  <Step title="View all VC-backed companies that are similar" stepNumber={2}>
    In the "Company Search" tab, users can now view all companies that: **(a)** Have raised VC financing and **(b)** Are somewhat similar to the user's product description. Users can also apply other filters to further refine the list of companies.
  </Step>

  <Step title="Tag companies that are actually similar" stepNumber={3}>
    Users can tag companies that are actually similar (via the "Actions" elliptical menu on the top-right of the Company Search table). Ideally, these should be companies that are similar, but are not direct competitors.

    Generally, a direct competitor is a Company that is going after the exact same customer and for the exact same use case as the user's Company.
  </Step>

  <Step title="View investors behind tagged companies" stepNumber={4}>
    Via the "Tags" filter on Investor Search, users can view all investors that have invested in companies tagged as similar. Users can then layer additional filters to further refine the list.
  </Step>
</Steps>

Investors that have invested in similar companies can be an excellent starting point. As an example, a Company building a foundation model may want to identify investors that have invested in foundation models before, and that believe in the broader opportunity space.

<Tip>
  Metal allows founders to seamlessly identify investors that have previously backed [Similar Companies](https://docs.metal.so/Product-Docs-v2/Identifying%20Investors/similar-companies).
</Tip>

***

### Most Active Investors at a Sector Level

Using the sector insights section within Metal (Insights > Sectors), users can identify investors that have been the most active in a given sector.  This is achieved by first selecting a set of parent and/or sub-sectors and then applying other filters:

* **Investor Type:** Use this filter to limit table results to only "Accelerators", or "Family Offices" or "Venture Capital Firms"
* **Time Period:** Allows users to limit table results to a specific time period (I.e. users can see which investors have been most active in selected sectors within a given time period)
* **Continents:** Filter can be used to limit table results to a given continent (I.e. users can see which investors have been most active in selected sectors within a given continent)
* **Round Stage:** Allows users to limit table results to specific stage(s) (I.e. users can see which investors have been most active in selected sectors within a defined set of stages)

The above effort is most useful to identify investors that have been most active or bullish on a given sector (or sub-sector). This is particularly useful for niche sectors, such as biotech and/or robotics.

***