How to Get Investors for Your Startup

At a time when successful startups are onwards and upwards, anyone is able to astonish the world with innovative and brilliant ideas. What young entrepreneurs really need to implement their plans is the right amount of capital from the right investor. Investing is a risky business that often doesn’t bring the expected profit, so investors choose startups carefully. There are always some tricks, though, that will help you gain an investor for your business.
Do you have the right business plan?
Any competent investor will request a business plan that defines key information about your business, your goals and how you’ll achieve them. Remember that a 50-page business plan may not hold the attention of investors until they’ve at least seen a summary of your business and a short presentation with 10 to 15 slides.
Have you validated your business idea with an MVP?
Aiming to succeed with your business, you have to consider that investors are more likely to accept a startup idea if it’s backed not only by a business plan but by experimental data as well. It’s always hard to plan everything ahead, so most startups use a “Build-Measure-Learn” approach that involves rapid building of a minimum viable product, testing that product with the target audience, and making conclusions based on that research. If you see that your startup idea isn’t viable, you’ll have a great chance to improve it at the early stages and build a product around your users’ needs.
What kind of team are you working with?
Remember that your team might also influence an investor’s decision to fund your business. Make sure you hire the right people for your team who are loyal and enthusiastic about working towards a common goal. Bear in mind that investors consider not only your aims and business strategy but also what kind of team you are: if a cohesive team of professionals, you’ll make a good impression and win an investor’s favor.
Do you know where to find business investors?
If you don’t know where to look for investors, check lists on websites like Forbes, BusinessInsider, CrunchBase, and AngelList. These lists include important information such as investors’ backgrounds, locations, recent investments, and social media accounts. Using that data, you can tailor your pitch for each person you’re going to contact.
Another great way to find investors is to use special online platforms where startups and investors are united by the same idea of cooperation. These platforms work pretty simply: you create an attractive project profile and submit it to the website. If a startup wins an investor’s favor, a deal is closed offline. As a rule, each deal is charged 5 to 10% for the service of using the platform. F6s, 500 Startups, and Gust are examples of online platforms for investor matchmaking.
Don’t forget that a personal connection is one of the most successful ways to attract investors’ attention. While attending conferences and meetups, you can get acquainted with people in a relaxed atmosphere. This is the best time to exchange your contacts. Consider attending annual events that gather angel investors, venture capitalists, and startups from all over the world, such as AngelSummit, Webit Festival Europe, and SVOD.
Have you grasped all the key tricks?
There are many things you have to consider if you desire to win the hearts of right investors, such as the right presentation of your business plan, teamwork, money forecasts, and an efficient pitch. Of course, if you have a referrer — a person who can introduce you to investors — use the opportunity to be recommended.
Don’t apply to all investors in the area without considering important factors like types of businesses investors prefer. Investors are ordinary people who make their decisions based on insights and emotions. Thus, it’s important to demonstrate your credibility from the very first contact. After some preparation, you’ll gain the appreciation of the right person and get your business funded.
