How to Find Investor for Launching Your Own Startup?

Launching a startup is a bold move, but that is just the beginning. If you want your business to succeed, you need a good investor as your support. The fact that 0.33% of the population starts a new business annually may seem irrelevant, but that is actually a noticeable number of people who are also on the lookout for investors.

With the competition being higher and more aggressive each year, you need to know how to find an investor who will recognize your potential. Don’t make a mistake to wait until the last minute. Start your search as soon as you can. With the following steps, you’ll know that this process is headed in the right direction.

Be prepared for what is to come

Before you start, you need to understand that this isn’t something that you will finish within a day.

Looking for investors takes months in most cases and sometimes even longer.

Make room in your schedule because you’ll need to attend meetings, answer emails, or have long talks with potential investors.

You need to understand the process if you want to achieve your goal. Being persistent and dedicated to the cause is a necessity.

Make use of crowdfunding

Those who aren’t familiar with this term, in the words of Wikipedia, “crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.”

It might not seem like a source of a large capital but it can actually be very successful if done right.

Consider the example of Oculus. In 2012, they launched their idea about virtual reality headsets on KickStarter. Their goal was $250,000. Do you know how much they have raised? They actually raised 2.4 million dollars. That is what we call successful fundraising.

Some of the best sites for crowdfunding are:

Ask around and start networking

Word of mouth can sometimes provide you with the most valuable insight. Don’t hesitate to ask your friends, family, ex-coworkers or bosses if they know potential investors who would be interested in cooperation.

Who knows, maybe some of them will see real potential in your business and decide to help you out.

On the other hand, consider attending conferences related to your niche and industry. You can meet a lot of influential people who can end up as your investors.

Networking will certainly provide you with valuable contacts and strong business relationships. So, even if you don’t find investors, you can make some powerful alliances.

Do your research and make a list

Good organization and thorough research are the basis of every successful venture.

First, think of investors that will align with your goals and plans. You need to have an idea of what type of investor will benefit your startup.

Then, do some research and collect information about all potential investors. It is crucial that you create a document where you will keep track of them.

Include all the people from your crowdfunding and networking activities.

Compiling a list of potential investors will help you to stay up-to-date with everything. You can create a simple Google Doc or Excel table with the name of a potential investor, point of contact, notes from your correspondence, and anything else that you find relevant and useful for the future.

Create a concise pitch

Investors don’t have the time to read your endless explanations and aspirations.

If you want to attract their attention you need to keep your pitch simple but powerful.

The main aim is to explain why your startup is different than others and how it will provide value to the consumers. Once you brainstorm different ideas and thoughts, create an outline that will guide you through the writing process.

In case that writing isn’t your strongest suit, you can always hire professional writers from different services.

On the other hand, if you just need some quick editing, you can hire experts from writing services. They can give you their objective opinion and possibly simplify the pitch.

Lastly, don’t forget to proofread it before it gets into the hands of investors. Online apps like Grammarly or Hemingway Editor will help you do that quickly.

Get your business plan ready

Increase your chances of making a deal with investors by creating a business plan.

A business plan shows that you are well prepared and that you have a clear idea of how your business needs to operate.

Some of the information you need to include is:

  • Basic information about the company
  • The team that will be a part of your startup
  • Market analysis
  • Plans for future growth
  • Financial projections (if possible for the next few years)

Greg Bailey, a financial director at Grab My Essay explains why is preparing a business plan so important, “Stating every detail will show that you have nothing to hide and that you have thought through every aspect of the business. Being completely transparent is the way to get potential investors on your good side.”

The important part is that you keep your plans realistic and achievable. You don’t want to let down your investors and later get yourself into trouble.

Wrapping up

Knowing these tips and tricks can make your pursuit for investors less stressful and more efficient. Considering how many startups are trying to make their way, it is useful to know how to stand out in the crowd.

Approach this task with attention and persistence. Keep in mind that you shouldn’t let a rejection discourage you. The ultimate advice, on top of the above-mentioned ones, is to never give up until you get what you want.

About the Author :

And my bio:

Angela Baker is a self-driven specialist who is currently working as a freelance writer at TrustMyPaper writing services and is trying to improve herself and her blogging career. She is always seeking to discover new ways for personal and professional growth and is convinced that it’s always important to broaden horizons. That’s why Angela develops and improves her skills throughout the writing process to help to inspire people. Also, she writes for LiveInspiredMagazine, rounding out her professional writing career.