How to find an investor: 7 ideas

The desire to find an investor for a project should be supported by a clear business plan and a detailed calculation of the necessary investment. You will need patience, patience and a willingness to seek funding in different ways.

1. Platforms for newcomer startups

New entrepreneurs can draw useful information from special resources. There they can learn in detail about the nuances of launching a startup and communicate with real investors. Tools for getting advice and attracting investment are available in the online community Startups.co, the world’s largest platform with 14 million users. And the statistics of the Gust.com resource indicates a total volume of investments of over 1.8 million dollars. The Startup Network can be singled out among Ukrainian platforms.

2. Clubs and networks of business angels, incubators and accelerators

The principle of angel investing is to track the project owner’s actions after funding. Hints and useful contacts are given to enter a new circle of contacts. Of the global networks of this type can be identified Angel Investment Network, Funded.com. In Ukrainian segment of market iClub, UAngel are well-proven.

If the owner of business idea is ready to let the owner of capital to the main processes of project development, it is worth to consider cooperation with incubator or accelerator. In addition to funds, it is sometimes possible to get premises for activities, as well as the opportunity to communicate with the thought leaders of other startups. Accelerators 500Startups, Ycombinator as well as TechStars advise mentees, offer startup capital and communication with entrepreneurs. American incubators are listed in the NBIA directory.

3. Crowdfunding and professional social networks

Kickstarter, Indiegogo and similar sites allow ordinary users to get involved in developing projects of different sizes. Thanks to RocketHub, the dreams of inexperienced business people are turned into realistic, profitable assets. There are many crowdfunding resources with various features and they are perfect for finding atypical investors. In the Ukrainian segment, Na-Starte and Spilnokosht are well established.

You can try to look for investments among owners of serious capital on LinkedIn. You can also reach out to like-minded people with money through EFactor, Plaxo, Cofoundr, and Startup Nation.

4. The use of private equity

Fans of sophisticated scenarios can try to attract direct investment of various sizes, ranging from a thousand to a couple of million dollars. Prospective start-ups generate a significant one-off income for such firms when they sell a stake. The key condition is a high probability of the project “taking off”. More than 2,000 firms have been helped by American private equity organizations. The total value of investments reaches $347 million.

5. Official grants and programmes

It is possible to participate in government programmes, obtain a loan or apply for non-repayable financial aid. This occasionally works when the risks in a project are minimal and there is no need for intervention by the investing party.

6. Online lending in funds with marketing savings

Uncomfortable banking conditions send potential clients to alternative funds. Apart from P2P resources, it is worth looking at platforms with an uncomplicated loan scheme (Posper, Lending Club, Ondeck). Also, reputable investors sometimes offer money in exchange for certain income distribution conditions.

If the amount of funding offered is less than the planned costs, try marketing yourself at the start. Proper positioning on social media and professional blogs, showcasing positive qualities on your website, creating an association between the brand and the person will help save money and increase investor interest in the business.

7. Connecting family and friends

People who have known a future well-known entrepreneur for a long time often have more faith in his success than others. Invite relatives or friends to participate financially in a promising project. A fruitful co-operation will result with those who have similar professional interests and are knowledgeable in the right subject matter.

With frequent refusals and lack of worthy offers, you should consider constructive criticism and hold firm. Continue to look for an investor until you are able to launch a start-up and prove doubters wrong.