A Perfect Match? If you think an intermediary service has the quick fix you need for finding investors, take a second look.
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Entrepreneurs Ahmed and Reem Rahim recently took a significantfirst step in the half-million-dollar expansion of their organictea company, NumiTeas. The brother-and-sister team made their first-everfund-raising pitch to a group of potential investors at a venturefair in Oakland, California, in April.
Their funding search thus far had been limited to theevent's sponsor, a matchmaking service called Investors'Circle in Brookline, Massachusetts, that links sociallyresponsible companies with like-minded investors. Numi Teas, alsoin Oakland, California, was entering a critical growth phase in itsfour-year history when it enlisted the help of the intermediary tofind capital for a new product launch, expand its inventory, andtriple the size of its office and warehouse space. Because of theirstrong social component-not only is their tea organic and certifiedkosher, but they also outsource some of their tea packaging to anorganization that employs disabled adults-the Rahims consideredInvestors' Circle an obvious starting point after hearing aboutthe matchmaker from other entrepreneurs and their own financialadvisor. "We thought it would be a great fit to be a part ofan investors' [network] that was looking to support organic[products] and sustainability in the environment," explainsAhmed, 35.
The tea company, however, was just one of several at the fairvying for investment dollars. Months after their presentation, theRahims are still in close contact with some of the participatinginvestors, providing financial projections for their company(valued at close to $4 million for 2003), in hopes of brokering aneventual deal. "We know it takes time to build therelationships and [for investors] to get to know the company,"Ahmed concedes. "We didn't have any expectations that itwould happen overnight, but we're hoping that it will happen inthree to six months. But it could take a year or twoyears."
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