Regardless of how excellent your product may be or how promising your business idea is, or even how much you have grown already, there is a great likelihood that more capital and financial leverage will improve the status of your business and take you closer to your ambition.
There are a couple of well-tested and proven ways through which you can attract investors and secure the capital you need to take your business to the next level. Below are six ways to find investors for your startup;
Online fundraising platforms:
In the past few years, there has been a tremendous rise in the number of online fundraising platforms. These platforms have become popular with accredited individual investors, business angels, and even banks that are looking for avenues to deploy capital. Some of these platforms are peer-to-peer lending sites, while some others are debt and equity crowdfunding portals. Some of the most popular ones include; AngelList, Seedinvest, StartEngine, and WeFunder.
Business schools and universities tend to have a strong business or entrepreneurial program. They have a strong network of investors and entrepreneurs from their alumni, faculty, or even guest speakers. They may be able to point you in the right direction of a willing investor for your startup idea.
It is fondly and rightly said that your network determines your net worth. Success in business, as well as fundraising, is determined by how visible you make yourself. You need to get noticed by the right investors. One of the ways of getting noticed is by attending events. Before attending any such events try to find out who is attending the event ahead of time. This will help you to prepare beforehand and make you more proactive.
Through industry friends:
Investors tend to specialize in funding businesses within a certain niche or industry. If you have a couple of industry friends who have secured investment from investors, approach them and ask for recommendation of investors to pitch to. You are better of finding an investor within this network than outside.
Social media remains one of the most cost-effective methods of reaching other people. Therefore, it is also a reliable means of getting the attention of investors and securing venture capital for your startup. Social media makes it extremely easy to get noticed. You may decide to take an inbound approach by using your own posts and updates or a more active approach through the use of sponsored or paid posts or collaborations.
Direct messaging is equally effective when you know the social media profiles of competent and well fitting investors. LinkedIn, Facebook, and Twitter are three of the most effective social media platforms to engage with investors.
It is advisable that when you want to take your project out of the garage and show to the world around you that you get involved with other founders much like yourself. You can join regional startup groups on social media or via events. This would help you to meet other people who may give advice on how you can be better and you can also offer advice to others. By building strong relationships with members of your community, you can work to help each other across the finish line.