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About Matching Services Print E-mail


Ever since the first business crawled out of the primordial ooze millions of years ago, entrepreneurs have faced the difficult task of locating the capital they need to operate and expand their businesses. This difficulty is further compounded by the fact that most entrepreneurs already have their hands full running their businesses dealing with employees, suppliers, customers, and clients and may not have any idea of where even to begin their search for capital, much less how to acquire it, once they find the correct forum.

For a young or small business without much of a track record, matching services putting you together with angel investors, venture capitalists, and other potential investors can be just the ticket for finding needed capital. If you've ever experienced a dating service you know, where you put together a profile that details your likes, dislikes, and personal attributes (or lack thereof), and the service sets up dates with potential loves of your life then you already know what a matching service is.
A matching service brings people looking for capital together with people looking for opportunities in which to invest their capital. Such organizations are more effectively used when you're looking for early money capital for a relatively new or high-growth enterprise. They provide you with an opportunity to put information about your company out there for all to see, hoping to attract someone who'd like to throw some cash your way.

A matching service differs from hiring a placement agent because most matching services are fairly passive, relying for the most part on chance encounters between companies and potential investors. Placement agents, on the other hand, actively and aggressively seek out potential sources of capital and then do everything they can to convince them to invest in the business that employs them.

Entrepreneurs are the classic little guys, a couple of techies inventing a new process in their garage or lab and attempting to exploit it commercially. Investors, however, traditionally have been the big guys pools of capital managed by professionals, capital furnished by rich families (the Rockefellers, the Phipps, the Whitneys, the Watsons), and, increasingly, institutional investors (insurance companies, university endowment funds, and, more important, pension funds).


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