How to Attract Investors to Your Startup

  • Aug 09, 2017
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Attract investors

A decision to launch startup may be crucial for the entrepreneur. While some people have ideas but afraid to share them and turn into live, others do their best to build a team of professionals and find investors. In this article we would like to share 5 tips that help you attract investors to your startup.

Networking and Communication

Interaction with people was always an important part of doing business. To open startup you need to know which investor is more likely to pour into your startup. Networking events are the real tool that will assist you in raising money. From picking a ‘sphere’ of your idea/product to ‘sub-sphere” (e.g. IT and, let’s say, developing a mobile app respectively) make sure you find your angel.

Here are some quick notes:

  • attend networking events (local or country-wide depending on scale of your business or idea)
  • start searching investor prior to raising money (sometimes you need to start half a year earlier)
  • know your investors (make a research where they prefer to invest money)
  • don’t be shy to ‘sell’ your product (if it is really fund-worthy it won’t turn away the investors)
  • always be easy to reach out (after successful networking be ready to answer the questions and make a deal)

Some perks: after setting good relations with one of the VC or business angels you may be introduced to their colleagues what increases your chances to raise money.

Business event

Building a Strong Team

The long way lies from having an idea to creating the product/service itself. To do this task in the best way possible you need to build a solid team. Doesn’t matter small startups or bigger ones, nobody is limited in choice. You can build the in-door team or make a bet on the outsourcing ones. Moreover, companies like our offers its services in helping startup in realizing ideas.

What benefits a strong team can give you?

  • investors are searching for exceptional professionals (having such people in your team rises both your and investors chances to succeed)
  • having a co-founder enhances your business attractiveness
  • proper outsourcing team will showcase your professional level (+ you may concentrate on your main tasks & goals)
  • modern angels invest in people (as they are the core of the project and the main intellectual asset)

Pitching

Finding right words is so important for startup company funding. Your ability to say things in a proper way to proper people is of a high importance. Doesn’t matter it is an informal meeting or showcasing your business plan – you must present your project from the best side.

What pitching may involve:

  • convince the investor you worth his/her time
  • describe what results your startup is ready to show from the short- and long-term perspective
  • define benefits and return on capital investor will get
  • show how you can make further cooperation possible and what results it will bring
  • make a precise business plan for official meetings

Useful tips: don’t start pitching from “money questions”, try to make it personal. First, tell more about your conception, show some pilot projects, tell who you work with. Ask an advice, tell more what investor can get from this cooperation (and it’s not always about money). Fairly tell about all risks involved.

Presentation for investors

Showing Results

MVP is, by far, one of the best tools for attracting investors. Basically, MVP (minimum viable product) has all core features of a fully developed app or service; it is able to exist as a separate product.

This gives a chance for VC or angel to get a visible and tested result of your work. As MVP involves some money spent, investors also will see you are ready to inject money in your project. Moreover, MVP can show how viable your product is, what leads to less risks for investors and avoiding possible loss of money.

MVP is a way of attracting investors showing how viable your product is & worth implementation. Click To Tweet

Perks of MVP:

  • model of project that is up-to-date and is tested by real users
  • you spend less time on development as only core features involved
  • you can still show the result to the investor
  • suits for both products and services

We believe these tips will facilitate and fasten the attraction of investors. Every good idea is worth implementing, so we wish you find a proper VC or business angel and we are always glad to assist and help with any your question.

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