7 Ways How To Find Investors for Your Startup
Any New Startup, has financial trouble, and needs lots of funds to develop itself and keep it self afloat. 7 Ways How to Find Investors For Your Startup, is the ultimate guide, to ensure that when your startup grows exponentially. And you can find investor for your startup
1. Choosing the Right Investor
One of the most thing for finding investors for your startup, is to understand, that the purpose of investor is to help with funds as well as growth of company. Always prefer a investor that knows and understands your field of business, so that he can help you with advice or technical support also, in case necessary. This is the right mindset to find investor for your startup easily.
A good investor will give you a perfect match of technology and finances. This is important. The main intent of 7 ways how to find a investor for your startup is not just making you get more cash, but also under the table help you in function.
One of my favorite examples in 7 ways how to find investor for your startup is Apple. And mind it that such advice on How to Find Investor For Your Startup can make you have exponential growth.
Apple computers back in 1980s was a small company. Apple struck a perfect balance of finance and technical know-how when they took investment for Xerox
Apple allowed Xerox to invest in Apple for $10 a share. Xerox also agreed to allow Apple Founder Steve Jobs and his teammates, to visit Xerox PARC. Xerox PARC or Xerox Palo Alto Research Center upon visit showed Apple marvelous technologies that Steve Jobs hadn’t even imagined. The PARC was highly restricted area, with no visitors, so the world hadn’t seen any such technology till then
The result was he made similar products for Apple, and it was really successful.
This is wonderful. The money that they got from investment was valuable. But the technology exposure that Apple got helped them make new products, and earn billions of dollar. A perfectly struck balance. I hope that balance in quest of 7 ways how to find investors for your startup would have helped you.
2. Have A Presentation, Company Report and Status File
Even before you start searching investment for your company. You need to make a case study or a profile for your company. Finding investor is like finding a customer. You promote your product to your customer, similarly you promote your startup to investor. This is important to understand 7 ways how to find investors for your startup.
Make a presentation, and keep all statistics filed together so that, when ever you get a chance to meet a probable investor, you have done the homework and are prepared yourself for every question. This will help you leave a good impression at the investor.
Do a rehersal. Ask some of your friends, or other startups that you know to take your interview. This will help you understand and find all the probable questions that the investor may ask, and therefore you will be better prepared, in mission of 7 ways how to find investors for your business
Keep statistics along with beautifully made graphs, about how you grew over time. It should include why and how your company can be highly profitable in future also. You must keep all finances and bank statement record in hand.
It should be noted, that it can be highly dangerous, to give really sensitive information to hand of some other person. Ensure that you don’t leave any information with that person after you leave. Ensure that other person doesn’t copy any data, or click any pics. Because who knows if doesn’t invest, and gives the information to another competing company.
Best of Luck in quest to Find Investor
3. Find Investors For Your Startup Online
Everyone would agree that internet is a really powerful tool, and internet has a lot of capability. We love internet. But we must utilize and leverage internet to it’s fullest in order to Find investors For your startup easily. One of the major places to find investors in LinkedIn.
Make a profile for your company on LinkedIn. This would promote your startup, will let people know about what you are, and also get into eyes of probable Investors
LinkedIn is a job oriented site and therefore it is fairly good to hit up on LinkedIn in hunt to Find Investors for Your startup.
For me, LinkedIn, Quora and Stack Exchange. LinkedIn majorly would help you in 7 Ways How to Find Investors for Your startup. But besides that, Quora helps you understand how you can improve your product. For eg. A question, “What are Some Examples Of Bad Design” and a Question “How do Companies Loose Customers” helped me understand and implement a better system for my company. A better company will automatically help you in 7 Ways How to Find investors for your startup easily.
Similarly Stack Exchange is mainly for professionals, and therefore you can understand technical stuff for your startup also. For eg. For my website, wanted a feature that i Found difficult to get, on Stack Exchange, by little bit exploration i found a easy solution.
Besides the 7 ways to find investors for your startup easily, you should be experiencing cash shortage already, so these 2 places will help you improve things, make them more productive and also cost effective thus keeping expenses low. Money Saved is Money earned.
4. Crowd Funding The Power Of Masses!!
Crowd Funding is a Nice trick in 7 ways to Find Investors for your startup. Crowd Funding is used by organizations with a social cause, or the companies that are largely influenced by public.
Crowd Funding can be in form of donations or charity also. Crowdfunding can also be used in case you already have a business and you want to create a subset of same.
When some popular personalities or film stars start a business they also use this way in how to find investors
The crowdfunding also allows the top authorities to get to hear lot of opinions from different investors. OnePlus which is a phone manufacturer did crowd funding. In order to 7 ways to Find Investors For Your startup you must definitely, take inspiration from OnePlus.
OnePlus started with a cause, that they will produce the phones with best Bang For the Buck. They wanted the highest cost to performance ratio, and a top end killer at mid level price.
This idea was liked by the people to large extent and as a result, it became successful.
It is the quickest and the fastest amongst 7 ways to Find Investors For Your startup and if you think you are fairly popular right now then you should try it.
As this post is to talk about startups, it must be noted that almost no startups have enough popularity. But it can definitely be that you approach bug influencers and get into touch with them, who help you to get crowd funding
5. Create A Website and App For Your Startup
A website and And App can be a lot effective in quest to find investors for your #startup.
More often then not, any probable investor would do a lot of research on internet. Imagine a person searching the name of your startup on Google, and the top comes a search result criticizing your startup. You would never want it.
That’s why, it is important, that you create your own website, so that you can keep everything in your safe cozy environment. Write articles And FAQ (Frequently Asked Questions) page for website.
And ensure that it ranks at top of Google, so that when anyone does research about your company, they only get to read your articles and therefore you can create a positive perception among people.
App is equivalently important. Incase your startup is of selling products or a type of startup, most of the times people return after a period of time. No one buys a product daily. People usually buy products once or twice a month.
In such a scenario, it is difficult to ensure that people return. It is a long process for people to open your site, login and then search product.
If they have a App for your site they can login once and then easily access whatever they want. The things like app and website make a more secure and cozy ecosystem with all round functionality.
As a Investor, no one wants to invest in a half baked Business. In order to find investors and implement the 7 ways to Find Investors for Your Startup easily, you need to ensure that your product may be small, but it should be done nicely. “It is better to have a half piece of baked bread, Rather than a half baked piece of break”
6. So when are ready to Find Investors
If you are at budding stage, and you have not started a business you just have a idea, then you need to understand that as discussed in Point 2, you need to have proper documents and presentation for your business.
When the idea is all you have, your odds of winning are completely unknown. You can’t even say that it’s 1:100. At this stage, your possible investors are called family, friends, and fools.
When you validate problem-solution fit (btw, here is how to do it: How to validate your startup idea?), you can probably asses your chance of winning. It can be 1:100, 1:50, 1:10 or any other. So how much do you have to increase your value to be fundable? Well if your odds of success are 1:50, you need to convince the VC that they can make more than 50x return on the investment. How much more? That depends on their strategy and this is something you should ask… the investors.
The timing matters a lot, if you go to early to find investors then it would be too risky for the investor and therefore you would be rejected, but if you go late, you would have spent a lot of hard time in cash crunch, which could be avoided if you had taken investment on time. If you go on right time with right business proposal it would be buttery smooth ride in the 7 Ways to Find #investor for your startup easily.
The more you know about your startup, the higher the odds of winning. That’s why with each round you get higher valuation which lets you raise more money for smaller equity stake and you’re expected to grow your value by a lower multiplicator.
Having that in mind, the only situation when it makes sense for you to raise is when you need the money to scale the things that work.
Your network will definitely have friends and relatives that would be belonging to different business industries and would have there own work.
Any person should approach all the big people or the big influencers. The idea is that you just need to put a ding in the #universe. There would be somewhere in some part of the world that has exactly what you need.
Having #influencers promote your startup will help you find investor for your startup easily.
Get emails of as many people as possible. And mail them regularly so that you can have good conversation rate.
7. Business Loan: Don’t Use it Liberally !!
Bank Loan is a easy solution for finding investment. But remember Banks are more bothered about return of the investment rather than return on the investment.
As discussed earlier, only finances can’t make your startup big, you also need technical know how and knowledge.
If you ever take loans from banks, it would be comparatively easy process, because if you are eligible you will get loan. There is less convincing just documentation. But a bank, will not be able to provide any knowledge or advice.
A #bank will also require you to have collateral. If you think that you will be able to repay a loan within a year then bank loan is a good idea. But for enhancement and expansion of startup, proper investment is better thing.
Moreover, when someone invests into your business, you give them stake in your company. But a bank loan has the collateral system (MNCs may sell stake also). As you won’t be able to give stake to bank, the result would be that after 1 year, when you repay, the assets of the company would remain intact in your hands.
As a big #company you can take loans, but as a small company, if you want money for short duration then prefer a loan. But if you think repaying loan would take more than a few years, then, skip this and use the other 6 out 7 ways how to find investors for your startup.