As a startup you will often hear about the need for an Advisory Board, but…
Where to find investors for your venture
Finding investors is a key skill for founders to have in their arsenal. We cover the best routes to find investors for business.
In order to scale your startup, the capital you will need will most likely involve looking for investment. The more capital you raise; the greater financial resources your business will have to roll out its vision.
When it comes to fundraising, there is more than one way to get the capital you need to take your business to the next level. Here are some of the ways you can find investors for your startup.
Online Fundraising Platforms
In 2019, online fundraising platforms have hit mainstream and are a great way for investors, banks and angels to deploy funds. Some platforms take the form of crowd funding peer-to peer portals – take Kickstarter for instance. Other online platforms take the equity crowdfunding approach including sites like Equitise & Birchal. Whilst online platforms are a great way to raise capital, they are also an excellent way to boost brand awareness and help provide market validation for your product through paid interest.
Network at Events
Becoming a successfully funded startup requires visibility – you need to get noticed by investors. An excellent way to do this is networking via events that investors are attending. You can be strategic and attend industry recognised events that bring a huge pool of investors together in one place. Prior to the event, read up about the investors you want to approach to try to schedule meetings to be productive. Alternatively, you can host your own event to present your own opportunity to investors.
Connect with Investors on Linkedin
Social media is highly popular and full of opportunities for startups to raise capital. Not only is a great social media presence an opportunity to attract investors, but equally entrepreneurs can test new ideas on the market and engage with their consumer for research and development.
Linkedin in particular is a cost effective way building brand awareness amongst investors. Whilst you can generate your own content and posts, you can also raise interest by commenting & liking the content of influencers who in turn can help build your own popular following.
Being the top social platform for investors & founders, Linkedin sees many investors & founders linked through direct messaging to generate new prospects. LinkedIn’s premium service, Sales Navigator is also a great way to connect & build relationships with angel investors & VCs who can help you scale your startup.
Apply for Accelerators
Accelerators are not only a great way to get seed funding, but can be a fantastic path for mentorship and develop your startup quickly with the guidance and support of like-minded peers.
Accelerators are often frequented by startup community elders and plenty of startup supporters more than eager to share their networks with you.
In order to be successful within an accelerator programme, it is essential that you do your homework as each accelerator has their different preferences. Reach out to previous founders of the cohort to see how they secured their places.
Ask Friends & Family (& beware)
Having friends with benefits is a welcome occurrence particularly when they can contribute to your latest round.
Sometimes it’s work colleagues or even a past employer. Whilst your business might not have the runs on the board you would like, some people are happy enough to bank based on the good work you have done for them to date.
Parents, rich relatives and the like are also frequent investors however we prioritise maintaining good relations within the family rather than any material gain – particularly when family is more likely to outlast most businesses currently in existence.
Get more paying customers!
Investors are more likely to invest in a product that is showing to be a great traction with customers. If you are able to get your product in the hands of customers and generate revenue, you will also find a lot more traction with investors. Acquiring real customers can therefore be one of the most instrumental ways to get investment.
Fullstack Advisory helps startups get established & grow effectively. Contact us for specialist startup accounting & capital raising support for your venture.
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Stuart Reynolds is the founder of Fullstack Advisory, an award-winning accounting firm for businesses leading the future. He is a 3rd generation accountant who specialises in tech companies, agencies and entrepreneurs.