5 Tips on How to Find Private Investors For Your Startup
Most new companies will require some type of funding to get off the ground. The big question is how to find private investors. The first thing you need to ask yourself is, what are you looking for in a private investor? Keep in mind that if you’re looking for an investor with specific industry connections and experience in your field, you’ll have a smaller pool of investors from which to choose from.
Tips on How to Find Private Investors for your Business
Set a Fundraising Target
One of the elements necessary for a successful round of fundraising is having a clear target. In other words, decide exactly how much money you need to start and/or run your business. When entrepreneurs seek funding from investors without a clear financial target, they may come off as being unprepared and confused, which can subsequently raise red flags for investors. Whether it’s a $10,000 or $1,000,000, you need to define a target for your fundraising before approaching potential investors.
Think Outside The Box
Many entrepreneurs and small business owners automatically assume that banks are the best solution for their venture capital needs. While many banks will gladly lend you money, they tend to lack the experience and guidance of angel investors. So if you really want to take your business to the next level — by acquiring venture capital and expert guidance — it’s recommended that you think outside of the box when seeking investors. Angel investing has become increasingly popular over the years, allowing small businesses to reap the benefits of both venture capital and professional guidance. You can learn more about angel investing and the benefits it offers by checking out some of our previous blog posts here.
Create Your Pitch
You can’t expect inventors to give you money without a strong pitch. Place yourself in a private investor’s shoes and think about what you would need to know before investing in a business. This usually includes the general concept behind the startup, whether or not they have sales, how they plan to cope with competition, what they need to capital for, etc. Create the perfect investor pitch by adding these elements together.
Research The Competition
Last but not least, don’t be afraid to look at your competitors to see if you can determine where and how they are acquiring capital. A simple Google search online will often reveal press releases in which fundraising rounds are discussed. Using this information, you can search for similar investors to see if they are interested in funding your startup.
This article brought to you by Intrepid Private Capital Group – A Global Financial Services Company. For more information on financial news, startup capital, and business funding, please visit our website here.