Many of the businesses require new investors for launching their start-ups or for scaling their businesses. There are many ways of approaching this fundraising. The companies that need fundraising also get the attention of those who have the capital so that they can get to another level.
Every business that is in a stage of growing, no matter how successful it is, will need funding at some stage. Even the businesses that have a great business or product idea and impeccably lean operations need more capital at some point. This is true regardless of how large your business is. With more financial leverage and more capital, businesses thrive.
The highly funded and successful start-ups engage in fundraising rounds at all times. Businesses need more working capital to reach their next milestone and it is to give any business chance to do well.
But businesses should not have unrealistic expectations when it comes to receiving funding from venture capital firms. There is a process to acquiring funding and investors. The best thing about entrepreneurs is that they are finding many ways for their start-ups to get noticed and to be connected with potential and new investors.
There are some choices for the start-ups and small businesses that are seeking funding. These options will help businesses by providing options to get a fair shot at acquiring funding by showing the potential of their business.
How to pick the right investors for your business
Below we list the options available if you wish to attract the right investors:
1. Fundraising Events
The biggest factor to gain success in fundraising and business is visibility. It is important to get noticed by the correct investors who are aware of your work and whom you are acquainted with. You can do this by attending more events. Find which players are attending an event and schedule meetings with the right people to make sure you are productive. You can present your opportunity and meet investors there or just organize industry trade shows and networking functions.
Consider other events if you want to move ahead of your competition and take a passive route. Consider joining other events for your choice of investors. You can also join charity fundraisers, sporting events, yacht shows, and film festivals.
2. Social Media Channels
If you are a lean start-up or an entrepreneur then you can benefit a lot from social media. If you are looking to exam the market, attract investors, or gain traction, social media helps you get discovered. It is cost-effective and helps you to reach others.
Take the inbound approach with updates and posts, or an active approach with your influencers, sponsored posts, and collaborations. This will help you to connect with the right audience.
You can also try direct messaging to reach out to investors. Find the social handle of an investor and send an impressive message to connect with them. If the investor is a good fit, then you can get their LinkedIn contact information and connect.
If you need VCs then you can find the right channel to research for the right investors in your industry. If you are seeking on social media, then there are some popular channels as listed below:
- LinkedIn – If you want to send cold messages or want quality introductions for passing a social proof then LinkedIn is your best bet. It offers guarded investors including Venture Capital investors.
- Facebook– If you want to forge meaningful relationships after meeting with an investor then you can choose Facebook. It helps to build a relationship or to generate the trust that is needed.
- Twitter– If you wish to engage in thoughtful conversations and increase engagement with the relevant investors ten choose Twitter
3. Accelerator Programs
There are widespread start-up accelerator programs that have an open invitation for serious entrepreneurs. You can get some leads on idea development and introductions to investors, better business advice, and a chance towards fundraising rounds with these programs. You need to ensure that you are aware of their terms and find the right fit before applying.
The accelerator programs also have a demo day when your start-ups attend program pitch to investors. These accelerator events are well recommended to get extensive research done and to verify your idea.
4.. Online Fundraisers
In the last few years, multiple online fundraising platforms have been started. These are very popular with the accredited and sophisticated angels, individual investors, banks, and other funds looking for ways to organize capital. The main platforms move from peer-to-peer lending websites that offer business loans to debt, equity, and donation-based crowdfunding portals.
Although start-ups may not be able to raise all their money through such platforms, they can use the online platforms to get noticed in the funding market. Finding the correct match in an online platform is important for your venture. Above all, you need to be realistic about how to make your campaign work.
One of the most underestimated and effective methods of attracting attention is blogging. It helps you to tell a story and you can encourage potential investors towards your venture by creating the right thought process. The investors thus gain interest and want to invest in your venture. You need to stay visible throughout the entire fundraising process.
Even if you do not have your website or a blog, you might be able to publish through LinkedIn or Medium. Another option is going to investors’ blogs which you are targeting. You can start by commenting and this might help you engage with the investors.
Even a simple email is a great way to gain the attention of angel investors or VCs. They are also responsible for some of the most notable and important start-ups. Just ensuring the right content will help you get a start and then you can go from there.
7. Product Improvement
If you want to acquire the right fundraising and move towards growth, then get strategic in your approach. This will make you successful and many entrepreneurs or start-ups do not focus enough on getting their product out there. Sending your products to the influencers, customers, and investors will help you in the long term.
Acquiring real customers will help you generate money and you will not be under high pressure to get money. This also helps you to get better terms and better investors. All you should focus on is getting your product in the market and generating buzz.
So if you are a new business or a start-up seeking investors then do try one or more of these ways to get the right investor for your funding plan.