How to Find Reliable Investors for Startups

It’s the most common problem for startups, isn’t it? Getting the funding to get your business to take off? It’s almost status quo for the industry. Finding someone who’s got the cash and willing to invest in your idea is hard enough. Yet the needs we have differ and some aren’t looking for just money. Some are looking for mentors who believe in the product and service as much as they do and wants to see it affect change more than they want to see profit from it. Others prefer investors who are silent, give complete autonomy and trusts the team to get what needs to be done, provided they give regular updates on the business.

Most of all, you want an investor who pulls through with their end of the deal. For today’s startups, they numerous options of networks, platforms and such to tap. Each has their own unique set of advantages. The secret is knowing what you need and knowing where to look.

Angel Investors 

This is the dream funding source for most startups. Angel investors are in for the long-haul, giving big one-time investments or continuously inject funds throughout. Most angel investors acquired previous success as entrepreneurs themselves. With their experience, they don’t only provide monetary support but also play as mentors to you and your team. As you work together to grow the business, you also get access to their contacts.

Because of this special role, it’s not advisable to simply approach the investor immediately and pitch your idea. Establish a relationship first and openly seek for their advise. This shows you don’t just respect their expertise but it also allows you to gauge if the individual is the mentor-and-investor-in-one you’re looking for. If the person isn’t interested in your business, ask if they know anyone who would be.

Getting in touch directly with an angel investor can prove to be difficult as many prefer to stay anonymous. Biases also vary depending on each one’s moral standards, preferences and even locality or nationality. Many entrepreneurs advise finding an investor within your region due to proximity, similarities in culture and a certain sense of kinship.

Startup launch platforms

These are often setup by companies as bridges between startups and investors while providing mentoring, educational resources, as well as other services to help startups get off the ground. Advantages differ with each platform. One popular choice is startups.co which is a network of several companies offering education, mentoring, business planning, customer acquisition and more. Who knows? You might be even able to get advise on the tiniest details such as which project management tool to use, what brand of signal boosters to get or what color of socks would go with your shoes.

Crowdfunding sites

Even if you match well with certain investors in terms of principles, vision and industry of interest, it could still be difficult to convince them to part with their millions and trusting you to grow these. It’s especially hard when you’re most likely not the only one vying for their favor. If you can’t get a lone or handful of investors, then why not offer the chance to be part of something big to a multitude? From the word itself, crowdfunding gives startups access to a pool of resources by collecting small amounts from numerous people. In turn, these aspiring investors get the chance to contribute to breakthrough technology or game-changing concepts. They’re also rewarded with either shares or first dibs on the products while your business gets the funding you need. It’s a win-win for everyone.

Some crowdfunding sites are dedicated to specific niches such as Appbackr for mobile apps, Sellaband, for the music bands, and Razoo for nonprofit purposes. For your innovative products and creative projects, the most popular sites are Kickstarter and Indiegogo. Kickstarter doesn’t only offer access to funding but rewards ideas they see as most deserving. One unique advantage to Indiegogo is they allow you to collect the entire amount raised even if you haven’t reached your goal. You decide which best works for you.