A solid financial footing is very crucial to the success of every new business idea. No matter how strong is your business idea or how big you are now, financial leverage and more capital are necessary for your business to grow. It’s not always about small businesses, even billion-dollar startups have been involved in fundraising schemes. Being an entrepreneur, you need to try different methods to land funding for your business. So, to scale up your business, you should not rely on just one approach but different to get noticed by your potential investors.
This article aims to give the best tips and strategies to help aspiring businesses in fundraising and finding investors.
Try Fundraising Market Online to Show Your Business
Nothing can compare to advertising your business in person, but you should not make it a limiting factor for your business especially when you are up to secure investment. There are many popular fundraising platforms out there including AngelList, Wefunder, and CircleUp which can help you stand out from the crowd. If your business has unbeatable metrics compared with your competitors then you can surely secure funding.
So, you need to post your business on these online fundraising sites explaining your best figures and find investors related to your industry.
Join an Accelerator
For new startups, joining an accelerator can be of great value. Applying to a popular accelerator will give your startup credibility. Moreover, these accelerator programs accept applications from serious entrepreneurs. In case your application gets approved, you will receive a modest check to keep growing your business. Apart from this, you also get exposure to other business investors in your industry and business advice for future fundraising rounds. So, read all the terms of a good fit then apply.
It’s Better to Have Partners
When you approach any investor, you always start advertising your business on your team rather than on a service or product. Having talented co-founders increase the trust of investors rather than a single founder. However, it does not mean you should rush in selecting the co-founder since choosing a competent leadership team is a sensitive process. Coming up with inefficient co-founders may hurt your business roots.
With that said, if you are successful in finding a suitable co-founder then the starting process will become a lot easier helping you immensely in finding potential investors.
Contact People in Your Industry
If you have not tried contacting your existing network then it’s time to approach them. However, you won’t get immediate results but contacting your connections will help you to find leads and gain insights. Not to mention, colleges and universities are excellent resources to secure funding. These institutions invite and have a good relationship with experts in multiple fields.
Ensure Your Participation in Different Events
Success in every business and attracting the right investors always come with maximum visibility. Attending different events where you can find potential investors can do a lot for your business. For that purpose, you need to find out the people who will attend the event. To discuss more your business, you can schedule meetings with them to come out with something productive.
These pitch nights can open many doors for your business. From meeting with active investors there, engaging in coding marathons, to participating in popular networking functions, and trade shows related to your industry, you can create your own opportunities. If you are a startup business, you should consider participating in WebSummit, Money2020, SXSW, and Collision.
Try Explaining Your Story in Blogs
If you have neglected or underestimated the power of blogging in attracting the inbound attention of the right investors, then you are missing a big opportunity in fundraising. You should tell the story behind your business in blogs, its mission, and the potential productive outcome. If you don’t have a website or blog of your own, then try other places to post these blogs including LinkedIn or Medium.
Also, try approaching the blogs of potential investors in your industry. Leave thoughtful comments on their blog posts to get noticed. They will surely engage with you with a great response.
Explain What Your Business Has for Them
Investors who are inspired by your business will surely fund you. However, they will be interested to know about the return. They want to make a profit on their investment in any form. So, it’s imperative to explain clearly the return they will personally get from their investment in your business. No matter how rich your investor is, show them what your business holds for them in return. So, clearly illustrate when and how they will get a return in the future.
Ask for The Suggestion of Investors
You should avoid begging for investment desperately with cold calls. Instead, consider asking them to think with their brain first. So, always seek advice from your potential investors and admire it. It also helps you to find out the flaws in your business and work on them.
Reach out to investors by asking for their advice first may help you to build a strong long-term relationship with your investor. This relationship can bring many leverages to your business later on.
Finding engaged and passionate investors is not difficult, it’s just a little tricky. With the right strategies in hand, you can land great funding for your business.
