Let’s be honest. The probability of receiving an unexpected call from a big venture capital firm or an angel investor or from the production team of Shark Tank is extremely slim. But thankfully, there are more than one ways to find investors and similar multiple ways to answer how to get investors.
No matter how amazing your product or the business idea is, how lean you can get, or how fast you are growing, the need for greater capital and financial leverage will always be inevitable.
If you haven’t landed the money you want for your business venture yet, this blog is for you. Consider the options and then share a great pitch deck with the investors to get the ball rolling.
Now without further delay, let us jump right into the part where we look into where to find investors.
Where can you find business investors?
1. Online Funding Platforms
In the last several years, a number of online fundraising platforms have come up, becoming the first choice for startups to find a business investor. With backing from accredited high net worth individuals, angel investors, and even banks looking for new ways to deploy their capital, these platforms are becoming very popular.
Even if you do not wish to use the platforms to find business investors, they can be useful to get noticed and make some noise around your product.
*Marquee Tip* If your business idea is related to donations, you can go with – Indiegogo or Kickstarter. For equity crowdfunding platforms the popular platforms can be:
- Wefunder, etc.
2. Apply in Accelerator Programs
There are a number of accelerator programs held globally, which comes with an open invitation for serious entrepreneurs. If you get accepted, you’ll most likely receive a modest fund to continue developing the business and get introductions to other investors.
Usually, an accelerator program consists of a demo day. This is where the startups that attend the program pitch are introduced to a group of investors.
*Marquee Tip* Before you enroll in these programs to look for business investors, do an extensive research and verify the success stories and previous track record. At times, you would be better off using the money to allocate to the accelerator in creating a core team that can introduce you to the investors first hand.
3. Attend Events
The fundraising industry, and the success it follows, is all about being visible. And events can be a great way to be that.
The first step can be to follow the business investors who are active in your industry, online and then attend the events they are going to be a part of. You can also attend events that see a host of existing and budding investors across business categories.
Some of the events that can be the best places to find investors for business can be –
4. Family and Friends
Many investors come with terms and conditions – ownership, interest rates, board member role, etc. Family and friends are one of those rare investors who don’t have any strings attached. strings attached.
To get investors in the face of family and friends, all you will have to do is reach out through call or email and invite them.over a lunch presentation. The best thing about this mode of finding investors of business is that you already know what makes your investors react positively.
How to Attract Investors to Your Business?
There are multiple ways to attract investors. Right from making pitches to making them elevator pitches in events, the ways to get investors for your business can be plenty. More often than not, across the internet, you can find a number of different ideas to attract investors – ideas that can confuse you in place of being helpful.
While we have already looked into the different ways on how to find investors for a business, let us now get into how to attract investors. Ways that are time tested and recently helped a Sweden CleanTech company raise $5 million.
[Also Read: What Do Startup Investors Look for? ]
When you don’t have any prospective investors
Build a Personal Brand
There was a time when entrepreneurs used to approach investors with a business plan (which used to be the first time the investor heard of the product) and pitch their offering.
In the current digital world where we operate, entrepreneurs start with making some noise in the market and showing out of the box capabilities. This, then put their one leg inside the investors’ board rooms.
The different ways to build a personal brand, specially on social media, can be –
- Showcase the proof of concept, establish engagement, and build traction.
- Talk to the investors directly on social media after building an organic presence.
- Maintain a constant presence by posting thought leadership-directed content.
A constant effort in the direction of personal branding can bring you to a stage where the investors recognize you even before you introduce yourself. All you need are correct business ideas to attract investors.
Get on Your Best Networking Game
The next stage to get investors for your business is networking. It allows you to pitch your idea to investors more organically.
“If you’ve been building a great business, getting out and networking within the local startup and investing community can be a great way to meet investors.” – Diana Goodwin of AquaMobile School.
It can also be a great way to vet prospective investors. The ones who are genuinely interested in your offering will keep the conversation going, while others would shut it down.
Get a Team of Highly Networked Co-founders or Core Members Together
Before you get into the market in an all-in mode, it is important to find the best team of core members or co-founders. The team is the best representation of how the business is moving. Moreover, with the right names being in the founders list, the investors grow a soft corner for the brand since they get a sense of security that their investments will be safe.
Our team of business investment experts suggest that you should make a core team in which different people have different sets of expertise – this will give investors an impression that your business will be covered on all grounds in times of uncertainties.
When you find investors
Create a detailed business plan
The first step to get investors invested in your product is also the most extensive one. You should build a DETAILED business plan highlighting
- The market scope for the product (in terms of the problem it solves)
- Your standing against competition
- Finances – current, projected
- Survival strategy when you are not making any business
- Team build strategy
- Exact funds required and its distribution
- Domain wise funds allocation
- Expansion plans, if any.
A detailed business plan of this sort leaves no question unanswered. It can help you give out an impression that you know your business and the market inside out.
Create complete transparency around returns and exit modes
When you have a team of investors ready to be pitched, you should prepare documents around what they will get.
It should be clear and backed by numbers, what the investors would get if they fund your business and in what timeline. Moreover, your version of the exit strategy should also be present to give investors the security that they won’t get bounded in the partnership and that even when they wish to quit, they will leave with some exit benefits.
So here are the different ways on how to get investors to become your partners. Now that we have looked into both: how to find business investors and how to attract them, there is only one thing that remains – Initiating the fundraising process.
The Marquee team can help you. Right from connecting you with the best investors to helping you create collaterals to attract them, we can help you establish your business idea or product as one that shouldn’t be missed.
Reach out to our team to set the grounds of getting funded.
We optimize & accelerate growth for already great products.
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