Finding and securing potential investors for your business can be crucial for your success. There are several ways in which you can approach fundraising and get noticed by the people with enough money to take your business to a whole new level.
5 Proven Tips on How to Find Investors for Your Startup
It’s a well-known fact that no matter how great your product is, how smooth your business operates or how big you’ve already grown, you will still need investors and capital if you want to keep growing.
In this article, we’ll take a look at some proven ways to attract new investors and keep them invested in your startup. So if that’s something you’re interested in, just keep on reading to find out more!
1. Plan everything ahead.
Before you start looking for new capital, we recommend you have a clear battle plan set up. To do that, you’ll most likely need to use a decision tree. This handy diagram will help you lay down in a clear and concise manner all the decisions you need to make, along with their potential results.
It’s a great tool you can use to get some objectivity related to your business goals. You can create a decision tree using the classic pen and paper or you can use an online decision tree creator. The latter is the better option, as everything is saved in the cloud so you have access to all the information you need, no matter where you are.
2. Use fundraising platforms.
In the last five years, online fundraising platforms have become extremely popular. These platforms attract countless people and projects from all over the world, every single day. If you simply want to raise donations, you can use websites such as Kickstarter or Indiegogo. However, if equity is what you’re after, you can register on one of the following platforms:
Even if you don’t manage to raise all the money you need on these platforms, they’re still a great way to raise awareness and get noticed. The most important thing is finding the right platform for your business needs.
3. Get social.
Social media can become your trusted friend if you own a startup. It allows you to test the market, raise awareness and yes, find new investors. It has never been easier to be discovered and that’s exactly why you should take full advantage of what social media has to offer. On top of that, it’s cost-effective and not at all time consuming.
You can start a Facebook or Instagram page for your business and start posting there. If you have the funds, you can even work with influencers to promote your project or idea. Direct messaging can also be a powerful tool, if used correctly. Reach out personally to the investors you need for your business and pitch them your idea. You’ve got nothing to lose.
We recommend the following platforms to promote your business on:
- Facebook. You can build meaningful relationships on Facebook with both investors and potential clients. You can also use it as a means of communication once you’ve managed to get some investors.
- LinkedIn. LinkedIn is perfect for cold messages and quality introductions. If you need more leverage, you can always get LinkedIn Premium.
- Twitter. On Twitter, you can engage in thoughtful conversations and keep in touch with relevant information that your investor provides.
4. Create a blog.
Yes, people still read blogs when they offer relevant information. Blogging is a very underestimated method to attract attention, telling your business’ story and staying visible and relevant in your field of work. A blog will show that you care about your startup and if you share useful information, it will tell investors you have the skillset to take the business to a whole new level of growth.
The reverse is also valid. What do we mean by that? We simply mean that it’s a good idea to follow some investors’ blogs as well. Most of the time, they read all their comments and even engage with the most interesting ones. If you want to get noticed, leave a thoughtful comment and start building a meaningful relationship from there.
5. Use accelerators.
Popular startup accelerator programs are a great way for you to gain funds and visibility for your business. If you get accepted into one, you’ll likely get a modest check to keep the business growing while new investors discover your project. You will also get precious advice on how to stage future fundraising campaigns. We recommend reading the terms and conditions before you apply, to make sure the accelerator is a good fit for your startup.
Usually, accelerators will have a trial day. This is the time when every startup attending the program pitches their idea to a group of investors. While this sounds great in theory, we still recommend you do some extensive research on the program itself.
You need to verify the level of success others had after taking part in the program, as well as how many businesses were actually signed up for a certain accelerator. Still, these programs are great for any startup that needs new funding or more exposure.
Our Final Thoughts
All in all, finding new investors for your business shouldn’t be a very hard process. You need to have a thorough business plan, be prepared to refuse inadequate offers, have a short pitch ready and make sure your finances are in order.
After all of that’s done, you can go ahead and look for investors. The hardest part is reaching out and having someone give you the first positive answer. After that, you can continue to grow and nurture the relationship you have with your investor to take your business to new heights.
What about you? What strategies did you use to get investors for your business? Feel free to share your tips and tricks in the comments below. We’d love to hear what you have to say!
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