Getting a proper channel to find a genuine investor is another tricky job entrepreneurs face while they plan for a startup or to grow the enterprise. It's tough to believe, but locating an investor is not so hard then convincing them. An entrepreneur has to click for different opportunities to have a discussion with more than 40 to 50 investors based on their idea as well as location.
However, a quality idea, good business model and decent pitching (as discussed in the earlier chapters) will work smoothly to impress an investor and start your venture. But the question is what the sources where you can find investors? In this chapter, you will get to know in details about the sources and paths of approaching investors.
Who are investors?
Every recent venture needs funds for starting a business; hence they need investment to run employees and other resources for the betterment of the venture. Investors are person or entities (like firms) who target these ventures and commit capital with the anticipation to receive financial returns. They utilize investments to grow their existing monetary strength as well as provide help to startups and companies that have the potential to grow.
Find an Investor for Your Startup
Since you are looking to start raising funds for your venture, there are specific locations you can search for to grab an investor. Most of them are listed below:
- Through your industry connections: If you have connections with other founders of different companies who have found investors, ask them to recommend you and set up a link. You can do research and then look for specific investors who invest in your domain of idea and work in your field of interest and look for them via your peer networks.
- Look Online: AngelList, LinkedIn, Microventures, and even Nexgeno can help you look in various useful sources for finding angel investors. Using these online services, you can set up some reliability and know their field of interest.
- Through top-tier business schools: Connect to your nearest university or institute or even somewhere you have studied, who are having strong business as well as the entrepreneurial program. Usually, they possess a strong network of investors as well as successful entrepreneurs who are their alumni, faculty members or guest speakers.
- Crowdfunding: With the help of this approach, entrepreneurs can step into the target industries that already have an extensive collection of venture capitalists and investors within their network. There they showcase their prototype or idea, and it's a great platform to maximize the figure of potential investors' views in one go. Once you come under their notice, you are good to proceed with ease.
- Entrepreneurial community of your city: If you are staying in a big city, there are entrepreneurial communities you can join. Regional tech and startup groups are there with whom you can connect and seek advice, attend different events, connect with organizing committees, and meet there with people to reach to potential investors.
- Through your mentors: in case, you don't have any industry connection, it is suggested to create at least one or two connections before you start shopping for investors. The mentor (s) you will choose will know your potential and significance of your journey and idea as well as you as a founder, and he will have experience also, so he can offer guidance and help you navigate the market and industry to lastly the investors.
- There are some other drastic ways to come into notice of investors, or you can connect to investors. These are:
- Make your product or prototype so viable that it is market-ready
- Research different sites having lists of investors and send them a convincing email about your idea
- Apply in any accelerator programs