Do you remember Waldo? Wasn’t it challenging at first to find his red-and-white-striped shirt, bobble hat, and glasses hidden in the middle of a crowd? But once you had spotted him the first time, it became easier to do so in the next illustrations. The same thing happens with finding investors.
To launch a startup, or to make it grow, economic support is eventually needed. As we all know, it’s not always easy to find investors. The good news is that, as it happens with Waldo, once you have found them the first time, it becomes easier. We hope the following steps will help you to learn where to look for investors and how to identify them:
Get connections from family and friends
Most likely your first investor will not be a wolf of Wall Street but your uncle Jamie, who believes in you. He might provide the support you need to get things started. This can sound silly, but try this option first. You will be surprised by the response of your own people.
Work your own network
Keep in touch with your classmates from college or high school, your old peers and current coworkers. They are a great source of added value: They know you, they can refer you to someone else, or they may become investors themselves. They can also link you to a potential investor.
Do your research
There is a ton of information on the Internet, but there are a couple of places that you might want to look for when hunting for investors.
ChrunchBase is the world’s most comprehensive dataset of startup activity and it’s accessible to everyone. Usually, investors are “reoffenders,” meaning that they always want to invest in the same type of company. You can have the names of those who invested on a company similar to yours, then get their contact information and reach out to them.
Find out who your competitors are and learn about other companies with your same target. Find out how they started, who is investing in them, and who their clients are. That could help you find new contacts and make your business grow.
Attend every event you can
There are many events where you can find investors. You only need to prepare a genuine and unique presentation about what you do. Many companies offer Tech Days, which you definitely need to attend to if you are running a startup on the digital market. You can also find a variety of events related to your field at Meet Ups.
Look to foundations
Sometimes we fail to realize that our idea could be good enough to win the support of a foundation. You can also look around for institutions—like a chamber of commerce—that are open to funding startups. They will provide the economic support you need to develop your project. Remember, you still need to tailor your pitch to each potential investor.