Most startups will require an investor to gain the capital for it to be in operation. Looking for investors requires humility and a certain amount of knowhow on your part in order to find the right investor to fund your startup.
1. Embrace failure
You will most likely face a lot of “no” before you find the investor who’d say “yes” to your startup. With this in mind, be diligent in researching about the person to whom you’ll deliver your pitch to. You can’t use a general pitch to all the investors and expect a positive response from them. Deliver your pitch as unique as you can, so they’ll buy your idea.
2. Network, network, network
Attend local networking events to reach out to potential investors or business leaders who can refer you to an investor. You can find events through: your local Chamber of Commerce, Meetup, EvenBrite and pitch contests. Be careful of people who guarantee you a connection with a potential investor by giving them some equity or percentage of sales. They may turn out to be scammers.
3. Connect to investors online
The web can help you find the funding that you need. You can visit these sites: AngelList, CruchBase and CapRally. But don’t rely on these sites too much; nothing beats the opportunity that face-to-face contact can bring.
4. Think strategically
Formulate a plan before you go out there. Arrange as many introductions as you can through common contacts or entrepreneurs who can introduce you to potential investors. A personal referral will be good for you and will cause the investors to listen to your pitch with an open mind.
5. Make yourself marketable
Increase your visibility for investors to recognize and see you. Volunteer to be a guest speaker on events or a guest writer on a site relevant to your start up. No matter the venue, this is a good way for investors to see that you have the expertise to see your startup through.
Crowd-funding means connecting with others who find merit in your product from the public to benevolent entrepreneurs. Different crowd-funding sites will appeal to different potential investors, what is important is that you connect with someone who shares your goals and business plan.
7. Go the traditional route
You can always seek financial assistance from government agencies or from the bank. Just remember that they will only supplement your capital not provide the whole amount.