How to Find the Best Investor for Your Startup
Starting a business with an exciting idea is quite an exhilarating experience. You have a niché market—hopefully—that you know you can leave your mark. But a couple of questions pile up: How will I raise my seed round? How can I find investors?
Sadly investors won’t appear out of the blue like a fairy godmother and hand you the capital you need. So be ready to knock on many doors and try different approaches. For example, you need a roadmap for what types of angel investors or venture capital firms you must reach out to. Now, we will discuss how you can find the best investors for your business to have a solid plan on this tiresome journey.
Dig Through Your Network
This one might sound obvious, but you’d be surprised how many people underestimate this step. It will be in your favour to find someone or a company who understands your niché and market. Chances are you already met other founders and investors in your specific industry. They’ve been where you are, and they have a whole other network you can use. In addition, they might introduce you to other investors.
If you think your network is not broad enough, just keep on building it. Try to surround yourself with people that have the same goal as you. Reach out to old friends and family members. Talk to your college professors. Snatch every opportunity, no matter how small or big, and turn it in your favour.
Use the Power of Online Resources
The Internet can be a magical place to find investors if you know where and how to search. If you are looking for equity financing or/and venture capitalists, there are plenty of firms that you can find online. What’s great about online sites like these is that some of them will present your company to potential investors. They can act as a bridge between you and help investors contact you if they are interested in your business idea.
If you are looking for angel investors, there are many platforms. Looking for angel investors? You can find many resources around the web, including our website.
Network with Events
The startup environment is highly competitive, and each startup has a great potential to fail. However, thriving ones are visible, consistent. Therefore, they can get the attention of the right investors. Events are the key places where you’ll be noticeable.
With a good deal of events out there, you should be strategic. Make sure not to miss the most hyped events because they will be buzzing with the best investors. Plan ahead of time, know who is attending the event very well and mark those close to your niche. Be prepared and work on the first impression you want to give attendees.
Social media is the most advantageous place to be discoverable and reachable; thus, it’s a non-stop growing force. It’s one of the most comprehensive networking platforms out there. As a brand, use it to your benefit and use it wisely. Establish who you are as a start-up, where you stand and what your values are. It will make you stand out and detectable to investors in your industry.
Don’t be hesitant to reach out to people. Forbes has a great little guide on approaching potential investors regarding different social media platforms. Be persistent and don’t feel down when investors are not interested or, they are ignoring you. Remember, there is still a good chance that you’ll encounter a like-minded investor.
Contact Business Schools in Your Field
Local business schools are a surprisingly profitable network opportunity with faculty members, alumni, and guest speakers who might be investors themselves or introduce you to the right investors.
If you earned an undergraduate or graduate degree from a university or college, go ahead and start there. However, whilst doing that, don’t forget to investigate the likely financing leads they might be giving.
Thing You Should Consider Before Selecting an Investor
Are they partner material or just the capital provider?
This is a vital question. After all, you should be looking for a partner that will provide value to your business and will care about your cause to help you push your limits. In the end, you are going to spend a fair amount of time with that person.
What kind of gaps are they able to fill in your business?
Speaking of providing value, the type of gap they will fill in your business is something you need to figure out beforehand. What are some specific missing pieces for your business? Are the investors you found able to fill a couple of them?
How much time are they able to spare for your business?
It’s safe to say that investors are pretty busy people. They probably have other businesses that they invested in, in addition to their other business-related duties. It’s important to know how much time they have in their hands and manage your expectations beforehand.
What kind of background are they coming from?
It is ideal to know if the investors you are looking for coming from the same kind of niche as your business. Of course, it’s not the end of the world if they are not coming from the exact background. However, they should have some knowledge as to what kind of market you are trying to thrive at. They should have already proven their value and success with their previous experience.
The number of ways you can find an investor is limitless. It’s all about being precious and determined. It’s a demanding journey where you’ll have to kiss a lot of frogs. Just remember so many other successful startups have been where you are. The key to their success was that they didn’t give up and kept trying. They remained visible and had a firm sense of who they were as a brand and what made them stand out.
Be open-minded, and don’t be afraid to ask for help whenever you feel stuck; seize every opportunity, then you’ll be alright. It’s a learning adventure that will lead you to your goal.