How Startup Companies Reach Investors in China?
In the process of looking for investors, how to choose and how to contact with them it is extremely important. For starters who know little or have no idea about fundraising, who and which approach for them to look for investors to start business in China? In general, the channels to reach investors are mainly in the following 3 ways.
Recommended by Friends
No matter in what time, friend recommendations seem to be a fast and efficient way to reach high quality investors. For investors, they are more willing to invest in projects that are recommended by friends, because personal factors such as trust and relationship come into play,but whether they are suitable for each other still depends on the specific circumstances of both the startups and the investors.
Relatively speaking, this is the fastest channel, but in fact, it is very hard for foreign startups to have such a network of resources in China, and the matching rate is not high.
Media Exposure and Entrepreneurship Contest
Some entrepreneurs or startups may make use of the media’s promotional advantages to create themselves as a reliable brand, so that to attract investors to contact with them. In recent years, this proactive approach is becoming very popular in China, like presenting their project on some reality show on major TV channels.
However, foreign startups should also notice that , the opportunity cost of media exposure and entrepreneurship contest relatively high. It’s risky that their business ideas are leaked, and they need to bear all the cost incurred in the process.
If entrepreneurs choose this way to get your startup project funded, they must, first of all, be confidence in their own projects, and secondly, to understand the risks this approach may occur. In China, one of the most renowned entrepreneurship is IPIEC Global, they are supported by government agencies and innovative organizations worldwide.
Professional Financing Service Platform
Professional financing service platform will not only provide opportunities for startups to reach investors,but also provide professional financing services to improve efficiency and reduce costs and risks. Comparatively speaking, it is appropriate to select a financing service platform focus on the investment and financing community. The platform brings the industry experience, contacts, channel resources and partners for the less-resourced entrepreneurs and ultimately helps the successful financing of the entrepreneurs.