4 Tips to Identify Investors for Your Startup
Chances are if you’re in the process of launching a new business you’re going to be looking for investors. Unless you’re already wealthy, you likely don’t have access to the money required to launch a new business, and almost all startups begin with a search for investors.
While relying on funding from outside sources might be something many startups are required to do, that doesn’t mean it isn’t a daunting and sometimes overwhelming challenge. It’s hard to find investors for even an established business in many instances, so that becomes tremendously more difficult for startups. The founder of a startup may have a very good idea, but they don’t have the numbers investors are looking for to create confidence.
If you’re building a startup and searching for investors, below are four tips to help you find people who might be willing to give you funding.
Search for Industry Insiders and Professionals
When you’re starting to identify people who might be able to provide you with funding, the first place to look is within your own industry. You might find that if you go to a high-level executive who’s already an influencer in your industry, you’ll get more than just investment funds. You might also discover that you receive great advice and guidance from someone who understands the in’s and out’s of your particular market, and sometimes that type of wisdom can be even more valuable than the actual monetary investment.
Think About People Who Have Already Invested In Businesses Like Your Own
If you want to find a pool of people who are most likely to invest, rather than just looking for general investors, do some research to see who invested in companies like your own when they were just getting started. If they’ve already invested in a company similar to yours, and it went well, it might leave them more compelled to invest in your startup, and much like looking for industry insiders as investors, these people may have specific advice and experience that can be valuable as well.
Use Online Platforms
There are a lot of online platforms that are specifically designed to help link investors with startups. You might want to visit sites like Startups.co, which is the largest start-up online community in the world because you don’t have to go through the rigorous process of finding someone who’s interested in investing. Everyone that’s part of the community knows they’re there for a certain reason.
Rely on Networking Groups
There are groups out there specifically designed to provide networking and connections between angel investors and people seeking capital. One of the most well known is the Angel Capital Association (ACA), which is a professional association of accredited investors. You can search through more than 13,000 angels as wells hundreds of angel groups and family offices, all in one location.
Simplifying the Search For Investors
The above are just a few of the many ways your can source qualified investors for your startup. Before you start your search, get all of your records together, store them in a centralized digital location that’s easy for investors to access, and begin looking for those people who are interested in helping you bring your business to fruition.