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How to Find Investors for Your Startup? – A Guide
Published 31 August, 2019
Funds play an essential role in any business. A lot of business gets shut because of lack of fund. So, if you have any plans of starting a business, you must first ensure your capital. Your business is just like a vehicle that needs fuel in the form of money to move forward. You must plan on how to raise sufficient fund even if you do not have much revenue by your side. Well, contacting investors is one of the best options. But then, a lot of us often land with a question of how to find investors. Finding an investor can be a painstaking task, but the journey of contacting, presenting, and receiving fund is a much exciting one. Here we have some of the ways that you can find an investor for your startup.
How to Find Investors?
Finding an investor seems a pretty tough job. But, trust me, it isn’t as hard as it seems to be. You need to know the general process; it will all get sorted for you. But before heading to any investor, you must be very clear about your ideas. You must ensure that your opinion and pitch are utterly compelling. Nobody would like to invest in something that doesn't sound attractive. Let us now dig in to find different ways of finding an investor.
- Business School:Business school can prove to be one of the fantastic options if you are starting up. B-school often promotes young entrepreneurs. These schools run entrepreneurial programs and also have a decent list of investors. You can undoubtedly contact these top-tier business schools. While you present your idea in front of the faculty in–charge, they might help you in getting an investor. So, this is the number one option for you in the list of ‘how to find investors.' But, if you are hesitant to visit a business school, there are way more options for you. Your startup will anyhow find a great investor through some or the other way.
The Internet has grown in every aspect. You get almost every solution over the web. From groceries to telephone bills, from apparels to jewelry, you get everything on your laptop. Now, you can even have investors for your startup. There are hundreds of websites that help you in getting the right investor for your business. Sites like Quora, LinkedIn, and Microventures are a great source to find investors.
- Angel Investor Network:
Angel Investor Network is a network initiated to solve the problem of funds for new startups. This network is full of members that provide services at different locations. The primary fund for operations comes from the fund that has been kept aside by the investment firm. You need to file up a particular application to become a member of the Angel Investor Network. When your application is approved, you can jump into the network. You can proceed further with your business by the money you get as the investment.
- Researching and Compiling a List:When you ask people ‘how to find investors?’ you must have heard this option form a lot of them. It is the most common yet beneficial way of finding an investor for your business. People have been practicing this process from decades and have got some severe results as well. You have to start with a list of people from your network of industry. Make a list of the firms that you feel will quickly adapt your idea and give you funds. Do not add the names of unnecessary firms. Adding such names will only increase the level of effort and difficulties. You can add names of capitalist from all the places across the country. When you are done with preparing and finalizing your list of investors, it is time for you to start contacting each of them. You might have to pay a visit to almost all the investors once to present your idea. So, it is advisable that you list investors whose visiting can be easy. Listing at least 40-50 investors increase your chance of receiving funds. You may not face difficulties if you have a brilliant business idea. A unique business idea has a high probability of winning investment.
- Build an AngelList Profile:
AngelList is yet another great way of getting investment for your company. This is an online platform for entrepreneurs looking for financing. People around the world are using this platform to get investment. It can also help you in making a list of investors you would like to talk to about your business plan. You have to create a profile over the online platform. This is an excellent way of knowing investors around you. Investors also learn a lot about you and your project through your profile.
You have to add details related to you, your company, and about the members of the company. This will help interested investors to contact you. Once you complete all the formalities of the form, start sharing your profile. Share your profile with almost all of your friends, family, professional connections, and request everybody for references. When people around you share your profile, fundraising will become comparatively easy. You may also connect with other patterns over AngelList and share certain words. You may land up with an investment by connecting with people around you.
There is a long list of investors under various categories. While you are making a list of investors, you can consider taking the help of AngelList. You may go to the group that suits your business and shortlist various investors.
So, an AngelList can undoubtedly help you in a lot of ways. You can either connect with the investors through your profile on AngelList. If not that, you can make a list and send emails and visit the investors directly.
- Craft Your First Impression:Your first appearance anyhow plays a vital role in almost all phases of life. Either it is through a mail, a face to face introduction or a profile bio, everything depicts the type of person you are. So, you certainly have to be a little thoughtful about everything in this case. You need to first start by drafting emails for the investor. Your emails should not wholly disclose information about your business. Excellent drafting of mail can prove to be a lot of good for the new startup. Your mail should be not entirely formal, but, it should not be casual either. So, make sure that you put out a great first-time introduction in front of your investors. While you roam around finding answers on ‘how to find investors?’, you must not ignore this point.
- Comb Your Networks:
You might have a perfect business plan, but you might still not land into the ideal investor. Your networks might help you get the ideal investor for yourself. Big companies often prefer investing in a startup that is introduced through a familiar source. The primary reason behind choosing startup is trust. Well, we all know how difficult it has become to trust anyone around us. Everybody is not a fraud, obviously, but, you cannot read the minds of people. So, companies often consider a startup that has some of the other mutual source involved. So, if you want to land into a great investor, start brushing up your networks.
After you are done making a list, check each company wisely, and see if there is any mutual connection. Companies do receive a lot of pitches for investment; yours might get lost if you send it over their mail. Going through a familiar source certainly increases your chances of landing into the significant investment. Send the best pitches to your acquaintance, and you might have good news super soon.
- Through Mentors:
A mentor is a person that helps you in learning different skills. They help you run your startup in a much more focused way. Well, your startup needs a mentor for taking a major business-related decision. If you do not have a mentor, you must consider having one. Mentors are great at times of fundraising. They have enough skills to guide you through the ups and downs of the business. They can be great entrepreneurs, influencer, or investment experts themselves. So, you can take guidance from your mentor to crack a fantastic investment. Your mentors can even help you get in touch with some investors. Thus, by now, you must have understood the importance of a mentor. Handling a business single-handedly is a difficult task; having someone for guidance solves a lot of problems.
- Entrepreneurial Community:When you have thoughts of launching a startup, the first thing you should do is to be a part of such a community. These communities can be beneficial in a lot of ways. These communities are specially made to solve various issues of new entrepreneurs. You may clear out all your confusion like how to find investors, how to build an audience, etc. These places can even help you get a great investor for your business.
These communities work in almost every location. If you do not have any near your area, you might consider the web. There are numerous communities actively working online. You can build connections and grow your circle. The chances of landing into an investor through a familiar source also increase.
- Convince Investor:
You must have a solid project plan to convince a person to invest in your business. As much as you want to land into a great investor, investors are also looking for a great startup. So, your business plan should be compelling enough for an investor to invest.
You can undoubtedly land on the best for you by paying proper attention to your presentation. Explain the investor the outcome of the business and what profits are likely to be earned. Making a file with excellent reports and bar graphs can undoubtedly impress an investor.
- Various Funding Option:
If things don't go well with the investors, there are way too many options to have a fundraiser. You can still raise funds for your business through various other sources. But they are not easy.
Crowdfunding is indeed one of the best options apart from getting investors. Crowdfunding is more like taking loans. Crowdfunding can help you market your business effectively.
So, by now, you must have your answers related to how to find investors. There are unlimited ways to get a fantastic investment. You just have to focus on your business plan.
how to find investors
how to find investors for startups