4 Ways to Snag Investors

by IMM Magazine - November 16, 2019

Need to find investors to launch a startup or scale your business? Luckily, there’s more than one way to approach fundraising and to get noticed by those with the capital you need to get to the next level.

 

No matter how great your product or business idea, how lean you can operate, and how big you’ve grown already, more capital and financial leverage will almost inevitably be a necessity. Even the best funded and hyper-successful billion dollar startups have been engaging in more fundraising rounds than ever before.

Ready to take your business to the next level? See these four options below on snagging investors:

 

1) Online Fundraising Platforms

The past five years have given birth to virtually countless online fundraising platforms. They have become highly popular with sophisticated and accredited individual investors, angels, and even banks and funds looking for new ways to deploy capital. The major platforms run from peer-to-peer lending sites which offer business loans to donation based, debt and equity crowdfunding portals.

For donations you can try Kickstarter or Indiegogo. For equity crowdfunding platforms the most popular platforms are the following:

 

AngelList

Seedinvest

StartEngine

•CircleUp

Wefunder

 

Even if you don’t use online platforms to raise all the money you want, they can be powerful for getting noticed. The key is to find the right match in a platform for your venture and needs, as well as being realistic about what it will take to make a campaign work.

 

2) Events

Success in business and fundraising is all about visibility, getting noticed by the right investors, who you know, and most importantly, who knows you. Attending events is a great way to achieve this. Try to find out who is attending the event ahead of time and schedule meetings to be productive.

If you are operating an early stage company, you may want to consider attending any of the following events:

 

WebSummit

Money2020

TechCrunch Disrupt

SXSW

Collision

 

To get ahead of the competition and take a more passive route, consider attending other events where your investors are likely to be. Think sporting events, charity fundraisers, film festival and yacht shows.

 

3) Social Media

Social media can be your best friend as a lean startup or solo entrepreneur looking to test the market, gain traction, and attract investors. It makes it easy to be discovered, and is still one of the most cost effective methods of reaching others.

When it comes to social media, here are the most popular channels and how to use them:

 

LinkedIn for cold messages or to seek quality introductions to pass the social proof with guarded investors such as Venture Capital investors.

Facebook for meaningful relationships after you have been able to meet with an investor once or twice. It is critical to build the relationship to generate trust. 

Twitter for thoughtful conversations and engagement with relevant information shared by the investor

 

4) Start Sharing Your Product

Fundraising and growth needs to be strategic to be successful. Yet, far too many entrepreneurs and startups aren’t focusing enough on just getting their product or service out there in the hands of customers, influencers, and in turn, in front of investors. If you can acquire real customers, you will be under less pressure to seek outside money. When you do, you can achieve better terms, from better investors. If sales are tough, then there are freemium and hybrid business models that can help get your product in the market, and starting to generate some buzz.

 

Happy brainstorming!

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