Tracking your competitors' key financial information is a quantitative way to determine the overall health of their business and gauge their ambitions for future growth. For startups, this heavily relies on the funding they receive and the investors involved. However, finding out who invested in your competitor can be challenging as investment details are often private and not readily available to the public.
Knowing your competitor's newly raised capital and the investors backing them can provide valuable insights for your business.
Investment in your competitor is a good indicator that you have chosen to solve a problem that others also find important. It validates the need for a similar tool, proving there is a market for your product.
News about your competitor's fundraising efforts can highlight their solution and bring awareness to the problem you are trying to solve. This alerts consumers, tech journalists, and other investors about your presence in the market.
Analyzing how your competitor fits into their investors' portfolios allows you to identify the type of investors you may want to target and assess your company's readiness.
3 Ways to Find Out Who Invested in Your Competitor
#1: Website & Press
Start by visiting your competitor's website to browse through any publicly available information about their latest investment backing. Often, startups announce a new fundraise through press releases or news articles on their website. If you have an indication of the fund, checking if they have updated their portfolio can also help you connect back to your competitor.
An easy way to track specific topics is to set up Google Alerts. All you have to do is enter the keyword or keyword phrase you want to follow and your email. The options allow you to select sources, frequency, region, language, and the number of results. After that, you’ll get an email notification with the sources your keyword or phrase appeared.
#2: Investor Database
One notable way to find information about your competitor's investments is through a database like Crunchbase. Crunchbase provides limited public information per month (10 free profiles) but offers two paid subscriptions to access more advanced features. For example, the total list of investors may be hidden but top funds and a few individual names may be available.
1. Search for the name of your competitor and select the organization.
2. The Summary page will display the Total Funding Amount and the Investors.
Clicking on Investors will show a list of the total number of investment firms and individual investors who backed your competitor. The most recent and lead investors will be displayed at the top of the chart.
Clicking on Total Funding Amount will reveal the number of funding rounds your competitor has gone through and the total amount raised. The chart in this section indicates the announcement dates to find the latest fundraising round.
#3: LinkedIn & Professional Networks
Search through your competitor's LinkedIn profiles for recent posts or explore their feed to find mentions of their fundraising activities. Investors or key employees may make announcements about a recent fundraise. If no announcement was made, you can also browse professional connections to find venture capital (VC) funds connected to the company. You can explore the fund's portfolio or recent press to search for your competitor.
Once you’re able to find your competitor's investors, it’s a good idea to get to know the fund. Looking through their thesis, fund structure, and portfolio will give you an idea of who is backing your competitors and can provide valuable insights into their value add. It also allows you to evaluate the type of fund you may want to target and the right time to get fundraising.
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Uma is passionate about creating valuable content and user-friendly projects. At university, she led community-driven programs for aspiring VCs and founders. She wants to build tools and resources that are accessible to anyone with the curiosity to get started.
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