How to Attract Investors for a Startup

      No Comments on How to Attract Investors for a Startup

No matter how good your idea or how strong your product is, your startup will have to secure funding if it’s going to be sustainable in the long term. Financial resources will help you get your business off the ground, where a lack of cash can hold you back from meeting your goals.

But, where do startups like yours get financing?

You can try borrowing money from friends and family or get a traditional loan from the bank; however, you’ll likely need to get investors on board if you want access to larger sums.

Here are some of the things that you can do to attract investors for your startup:

Design a Professional Logo

One of the most important things that investors and venture capitalists look for in an emerging business is professionalism. Budding entrepreneurs who lack vision and industry exposure often undermine the significance of branding, and it affects their fundraising attempts. So, if you want to impress investors and make it easier for them to trust your business idea, then you must create a unique and attractive logo.

Contrary to popular belief, you don’t need a lot of money to create some of the best logo designs. For instance, you can make a logo without spending big money at all! You can find many talented logo designers across the globe who charge a nominal fee on platforms like Freelancer or Fiverr. You can also use professional logo maker software and websites to create great logos yourself at a small price.

Soft Sell

You may already know this, but networking is extremely important for entrepreneurs. It allows them to connect with like-minded individuals that can help them in various ways, one of which is making investments.

In fact, networking can help you pitch relevant people in a more natural and organic setting. Because this approach is less direct, it’s a more comfortable and natural way of pitching. To make this work, you should focus on attending more social gatherings and public events.

Rope in Co-Founders

When you pitch your startup, you’re not just selling your product or brand–you’re also selling your team. Venture capitalists and other traditional investors will usually judge the team behind a startup before they decide whether they want to risk their hard-earned money or not.

Besides, running an entire business on your own can be quite challenging, and having more people can certainly help. That said, you shouldn’t have co-founders on your side just for the sake of it; having the wrong people on your team is actually worse than having no co-founders at all. So, pick your team wisely.

Use Fundraising Platforms

Due to the growing startup culture, a number of online platforms that offer crowdfunding opportunities have emerged. These platforms, including Kickstarter and Indiegogo, are backed by venture capitalists, angel investors and even lending companies around the world. Budding entrepreneurs who have interesting and viable business ideas can launch fundraising campaigns on these platforms to meet their financing goals. Usually, the bigger the “wow factor” of the product, the higher the amount of funds that you can expect to raise.

One of the best things about crowdfunding platforms, apart from the fact that they can open doors to international funding, is that even if you fail to achieve your target for the funds, you can still expect to get good recognition online that can introduce you to new possibilities.

Become Active on Social Media

If you are a solo entrepreneur, then social media can help you a lot. You can use platforms like LinkedIn, Facebook, and Twitter to test the market, spread awareness about your brand, and attract investors.

There are various approaches that you can take with social media; for instance, you can take an inbound approach with your status updates and posts, or you can become more active and start leveraging influencers and sponsored posts.

A direct way to use social media is to approach high-quality leads, i.e. potential investors on their social media handles. Luckily, it’s not that hard to find the social media accounts of prominent investors and venture capitalists online. There are plenty of blogs and forums where you can find this information; there are even database websites like Crunchbase, where you can research potential investors as much as you want.

Take Help of Accelerators

Accelerators are companies that provide dedicated support to serious entrepreneurs – both financially and technically – in the form of mentorship. If you are able to secure help from even a single accelerator or incubator, then you can get benefit from not just a good amount of funds, but also business advice and contacts that can facilitate your business plan.

Most accelerator programs offer a demo day which is when entrepreneurs who participate in the event can pitch a group of investors on the spot. So, if you have a passionate team, a top-notch presentation, and a solid business idea, then you can expect to get at least a few investors excited about your business when you get your turn.

Bottom Line

Attracting investors can easily be one of the most challenging things that you encounter when you launch your startup. However, you can’t grow your business without investors, which is why the sooner you start working on getting them on board, the better. Good luck!

Leave a Reply

Your email address will not be published. Required fields are marked *