This might come as a surprise to many, but finding an investor is not the hard part in the process of funding. It is the entire process of impressing them with the idea and business model and raising consistent money that can help grow the start-up. Apart from this, the investor must also have knowledge about the field in which the start-up operates. He / she must be able to significantly provide financial resources throughout the development of the company and guidance if they have more experience. This comes with due diligence on the part of the start-up founder, a great but realistic business plan and plenty of research. If you are ready to take the plunge, here’s how to find investors for your start-up:
- Through B-schools
Call the best business school in your location that has strong business and entrepreneurial connections. They will usually have a good network from their guest speakers, faculty or alumni. Give them a cold call or email their entrepreneurship cell asking if they can assist in connecting your idea to a potential investor.
- Through industrial connections
If you have network with founders of companies who work in the same or similar field as your start-up, ask them for recommendations. Many investors specialize in a particular field such as tech, AI, foodtech, biotech etc. Do your research on angel investors in your field and try to get a connection with them if possible, through your existing network.
- Online
There are multiple acceleration and incubation websites available online in which you can register your company with details and upload the business plan. They will then help you connect with potential investors either through the platform or via events organized by the acceleration or incubation firm. Also, websites like Quora are a great place to find investors. Check out their profile and connect with them through Email or LinkedIn.
- Crowd Funding
They are plenty of crowd funding platforms online as well such as Kickstarter that have targeted specific industries such as the arts, start-ups, business, science etc. They also will have good connections with venture networks, equity investors and loans. This method of approach is ideal for companies who are good at social media and reaching out to customers, and the founders who do not mind the minimum guidance. Crowdfunding is a good way to boost the viewership of your start-up in a single go.
- Events
You can achieve success for your start-up only if you are ready to make it visible. Get noticed by the right investors whom you know and who want to know you. If you attend networking events, start-up summits and pitches, you can build a good network of connections with fellow entrepreneurs and investors. Try to find out the guests attending the event beforehand, and keep ready all the documents of your start-up like the business plan and pitch presentation. Some events will also have a pitch round where you will be given some time to present your idea. Prepare well before attending.
So, these are the top ways by which you can connect with potential investors. Note that the list is not exhaustive. Watch the economy and make sure you get in at the right time. You can even cold-email investors by finding them on social media platforms such as LinkedIn and Quora. Some investors are also active on blogs, so you can read about them there and also connect with them. Whatever the way you choose, ensure that you are ready to present and explain your idea before meeting up with the investor.