8 Easy and Simple Ways to Find Investors for your Start-up
Money plays a pivotal role in any business. One can have the most revolutionary business idea and an incredible team, however, with no funding, they wouldn’t be able to do much. Right from launching a start-up to scaling its business, capital and financial support is a necessity that cannot be ignored.
To hit the milestones you’ve dreamt of and achieve anticipated goals, you must have capital assistance. Without funding, you would be depriving your start-up of numerous opportunities and potentialities. Therefore, its important to seek investors that will fund your company and fuel its business to new horizons. Here are 8 easy ways through which you can find investors for your start-up or small business:
#1 Establish a Virtual Presence
In this digital age, the best way to get noticed is by establishing an online presence. The virtual world is a hub for launching platforms and crowdfunding websites that are popular amongst verified investors, angel investors, and even banks. Most of such platforms operate as a peer-to-peer lending site that look for sources providing business loans to equity crowdfunding portals. Some of the popular equity crowdfunding platforms are StartEngine, Quora, LinkedIn, AngelList, SeedInvest, etc. These portals can help you establish a strong online presence easily.
#2 Do Your Research
Make an inventory or a list of your immediate contacts and analyse who you feel matches with the vibe of your company, would understand your vision, and help you accomplish your goals. Run a thorough research on the short-listed investors and reach out to them. Introduce your ideas to them in the most tactful manner possible and ask for honest feedback. Ensure that you actually consider their suggestions before contacting them again.
#3 Try to Get Noticed
To attract investors and obtain funds, you must work on your visibility. You need to make a lasting impression on them so that they think of you when they make their decision. For this, try attending relevant events, arrange meetings with prospective investors, participate in coding marathon, industry trade shows, film festivals etc. Go through the guest lists of important events to stay updated.
#4 Consider Angel Networks
Angel Networks are member-based networks that offer service by location. They function through a fund set aside by an investment firm to garner deals for their network. The applications are then pre-screened and the founders collect offers from numerous investors at one point rather than switching from one angel to another. The angels also get the option of staying anonymous.
Angel investors don’t just limit their offerings to funding. They may also offer you complete mentorship, help you build your network, and introduce you to their contacts. Some of the popular angel networks sites are Angel Capital Association, Funded.com, etc. These sites can help you with angel investors looking for opportunities.
Accelerators serve as incubators for small businesses or start-ups. They help you set up your start-up for success. Through Accelerators, you can connect with serious, like-minded entrepreneurs looking for guidance and mentorship like yourself. They can also give you solid business advice and introduce you to their contacts in exchange for the same.
While applying for an accelerator program, it is essential to conduct an thorough and extensive research to ensure their credibility.
Some of the investors would like to take it a step further and make your idea into a practical business model. They may offer you this in exchange for a part of your start-up. So, ensure that you don’t make hasty decisions and figure out how much you’re ready to sacrifice.
#6 Utilise the Power of Social Networking Sites
Social media and social networking sites can do wonders for your business, if utilised strategically. You can update your contacts about your business developments, and even collaborate with influencers who can further promote you. Some of the most popular social media platforms are LinkedIn Facebook, Instagram, Twitter, etc. Professional social media sites like MeetUp, EFactor, Xing, etc., are also great platforms to connect and expand your reach.
#7 Formulate a Personal Marketing Strategy
To survive in the market and prove your mettle, you must come up with a personal marketing strategy. For example- Launch your product for the public and collaborate with as many influencers as possible to catch the attention of investors.
Make the most of freemium and hybrid business models that help you get your product in the market for lesser prices and garner more limelight.
#8 Seek Help from Friends & Family
Your friends and family are your biggest supporters who can help you kick-start your business. For starters, it won’t be as difficult to convince them to buy your products/services. Secondly, you won’t have to spend time trying to earn their trust and explain your vision since they already know it.
While it’s great to have friends and family get involved in your marketing strategy, always remember to never mix business with personal relationships. Always see to it that you maintain records and inform your close ones about the legalities and risks involved.
Running a start-up, especially in the initial stages, can seem like an impossible task. However, it is important to stay consistent and remember the power of perseverance. Understand that there may be a more downs than ups in the beginning and always chase after your vision and goals.