How To Find The Right Investors for Your Business

By  Zainab Agha

June 03, 2022 5:07 pm EST

As a small business owner, you may be looking for ways to raise capital to fuel your company’s growth. One option is to seek out investors. 

But where do you start? How do you find the right investors for your business? 

There are a few elements to consider when searching for potential investors. These will help you target the right people and increase your chances of securing funding.

What Is Your Business’s Stage?       

Startups and early-stage businesses will have different needs than more established companies. It will affect the type of investors you’re looking for. 

For example, early-stage companies may be more attractive to angel investors, while established businesses may be able to secure venture capital. 

What Is Your Business’s Industry? 

Different industries will also have different types of investors. For instance, tech companies may seek out venture capitalists, while businesses in more traditional industries may look to private equity firms.

What Do You Need The Funding for?

Think about what you need the funding for. It will help you determine the type of investors you need to target.     

For example, if you’re looking for growth capital, you’ll want to look for venture capitalists or private equity firms. But if you need debt financing, you’ll need to approach banks or other lending institutions. 

What Are Your Business’s Financials?

Your business’s financials will give potential investors an idea of your company’s health and stability. They’ll want to see things like your revenue, profit margins, and burn rate. 

Having strong financials will make you more attractive to investors. 

What Is Your Exit Strategy? 

Investors will also want to know your exit strategy. It is how you plan on getting them their money back, plus a return on their investment. Common exit strategies include selling the company or taking it public through an initial public offering (IPO).

How to Find Investors?     

Now that you are aware of what to consider when looking for investors, where do you actually find them? There are a few different options:

Online platforms: Several online platforms connect businesses with potential investors. These include sites like AngelList and Fundable. 

Crowdfunding: With crowdfunding, you can raise money from many people, typically through an online platform. It is a good option if you’re looking to expand smaller amounts of capital.     

Personal networks: You may also be able to find investors through your personal and professional networks. Ask around and see if anyone you know has connections to potential investors.

Investor directories: There are also several investor directories that you can use to find potential investors. These include the National Venture Capital Association and the Seed & Startup Capital Directory.

Hiring an investment bank: If you’re struggling to find investors on your own, you may want to consider hiring an investment bank. They can help you identify and approach potential investors.

Making The Pitch 

Once you’ve found some potential investors, it’s time to make your pitch. It is where you’ll need to sell them on your business.  

You’ll need to convince them that your company is a good investment and that you’re the team to make it happen. When making your pitch, there are a few things to keep in mind:

  1. Keep it simple: Don’t try to cram too much information into your pitch. Instead, focus on the critical points that you want to get across.
  2. Tell a story: A good story can be more persuasive than any number of facts and figures. So, make sure to craft a compelling story that sells your business.
  3. Be prepared: Make sure you’re well prepared before making your pitch. It means having all of the mandatory information and materials ready to go.
  4. Practice: Don’t wing it when it comes to your pitch. Practice beforehand so that you can deliver it confidently and smoothly. 
  5. Be passionate: Investors want to see that you’re passionate about your business. So, make sure to infuse your pitch with some enthusiasm.
  6. Follow up: After making your pitch, follow up with the investors. It will help keep your company top of mind and increase the likelihood of getting funding. 

After you’ve made your pitch, it’s then up to the investors to decide if they want to invest in your business. If they do, congrats! You’ve just secured some much-needed funding for your company.  

But if not, don’t despair. Just keep pitching until you find the right investors for your business.

Zainab Agha

Zainab started her career in advertising as a copywriter; which taught her how valuable moxie was in the boardroom and translates that in her campaigns. Building brands has led her to explore digital marketing, communication concepts, and what it takes to grow an idea from scratch. In her free time (let’s assume she is a badass with balancing work and play) she travels in heels then complains, experiments with innovative creative solutions that sell, and does stand-up comedy.

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