Find an investor: effective ways

Many startup owners are interested in where they can get money to start a business. Those businessmen who have already left the sandbox want to expand their business. In both cases, you will need external funding. This means that you should find the right ways to collect them and attract the attention of those investors who have the seed capital now that you need to move to the next level. You have to decide what kind of support you need besides financial. Many partners can give you not only money, but also experience, ambition, industry secrets and even friendship. But potential investors will want you to tell them and show them what’s good for your business.

How to find an investor for business

First of all, you should talk to your relatives and friends. There is the likelihood that your rich uncle or millionaire friend will decide to increase their capital at the expense of your new and unique idea of the project. Also, you can ask your business acquaintances to introduce you to their investors. In addition to related and friendly relationships, you can use some locations where you can find those willing to invest in your business. Here are four of them.

Activities related to your field of activity

They will help to establish contacts and expand the pool of potential investors. It can be a pitch night to present your ideas and opportunities, or just a visit to organised networking events and industry exhibitions.

Educational institutions

Business schools are another source of information about potential investors. Their teachers, alumni and guest speakers may know investors or be those who want to invest in business. You shouldn’t limit yourself to business schools. If you have a Bachelor’s or Master’s degree after graduating from a college or university, you can contact them to discuss issues of potential clients. As a rule, they are happy to help graduates.


Online platforms for fund-raising

Over the past five years, many such resources have emerged. They have become popular with experienced private depositors, even banks and foundations looking for new ways to place capital. Such platforms are different, for example, sites that offer business loans, as well as resources that specialise in donations, as well as debt and equity crowdfunding systems.

Social media sites

These ways can be the best friend for a thrifty startup or individual entrepreneur looking to test the market, gain universal popularity and attract investors. Social networking is one of the cost-effective ways to find customers and partners. You can use your unique posts and updates or take a more proactive approach by engaging well-known bloggers, stars or other influential persons for promotional purposes. Also, the Internet can offer you to use special platforms that connect startups and small businesses with investment capital.

Also, you can apply for a loan for a small business and plan private deposits under the contract. If the idea of your startup is fresh and unique, it can attract the attention of the ideal investors to open a business. These are individuals who invest their personal money in promising projects at the initial stage of their development. All this helps them earn money, develop young businessmen, as well as contribute to improving the level of business in the global market, even in interdisciplinary technologies.

Venture funds or financial institutions use borrowed capital from third parties. They are suitable for scaling a business that has been developed and has a solid foundation. There is no one right way in finding the perfect depositors. But if you think outside the box, you will surely find great partners who will be willing to entrust you with large sums of money in anticipation of a significant increase in them. This is probably gonna take you a while.