Do you have an innovative business plan for your start-up? Don’t know how to back your business? No, need to worry. Their are plenty of sources by which you can raise fund for start-up. But it is not always easy to raise fund, some times you need to speak to hundreds of investors before you find the right investor who can invest in your idea.
We come up with ten ways by which you can find the right investor for your start-up:
Start-up Launch Platforms
Their are few platforms that provide information, research, and assistance for getting a business launched, it also covers up the ways to connect with investors. Companies like startups.co are very helpful for start-up founders that are looking for raising fund.
This company already has 13.9 million members and makes it the largest start-up community in the world and provides an opportunity to connect investors in your space for funding. Another up coming platform is Gust which already helped in raising $1.8 billion.
You can find an angel for you start-up that not just only invest in your start-up, but will also offer you mentorship, solid advice and provide easy access to their network of contacts. Places where you can start with includes Funded.com, Angel Capital Association, and Angel Investment Network all of these platforms have thousands of angel investors waiting for the right start-up to invest in.
Angel Capital Association even offers you a directory listing by area and platform type where you can search for an angel investor. City Chamber of Commerce groups have also associated with angel investors to help new business opportunities for that city, New York, Los Angeles, and Chicago ard also included.
Crowdfunding sites may also be helpful for you. They provide you access to many different types of investor i.e. general public who have interest to be a part of “Next big what?”. We have enlisted few platforms, which is Kickstarter, Pererbackers, and Indiegogo. For, philanthropists who loves to help other RocketHub is perfect platform for them, OurCrowd is an accredited investors seeking platform for new ideas.
Before seeking investment study each crowdfunding site carefully as they have their own focus and way of incentivizing investors.
Incubators & Accelerators
Start-up is like your baby and every founder wants see it grow and flourish. Working with an incubator or accelerator program will open a whole new dimension of investor resources to help business grow and succeed. These investors are keen in bigger role to help you turn your idea into a viable business model as well as provide the funding sources to make it happen.
These incubators and accelerators even offer a physical space to set up your office which makes it easier to work with you directly. These spaces are shared spaces which is also used by other start-ups and help you in getting lot of different suggestion and ideas by different founders. That National Business Incubation Association (NBIA) has a directory listing to help, find a business incubator member nearby. In exchange for funding, they may want equity percentage of your start-up, so it’s better to be prepared in advance for sacrificing equity in against of investment help.
Start-up accelerators, such as 500Startups, TechStars, and Ycombinator, offer advice, small seed funding, and exposure to other investors through their own networks.
Small Business Administration
If you don’t want to give up your equity and also wants to raise fund then Small Business Administration is the best source for funding because more programs have been developed in recent years to stimulate the economy. They offer small business loans and grants, with fair terms without interfering in your business. Also, they won’t be asking for stake in your business.
Professional Social Networking Sites
Beyond LinkedIn, which is still a place to look for investors, their are numerous professional social networking sites available which help you connect with all types of investors across all industry specializations and business segments. LinkedIn is one of the best place to look for investors. Many other professional social networking sites like LinkedIn even connects you with investors from other countries who are interested in global business environment.
Some professional social networking sites you might want to consider for investor connections are EFactor, Xing, Plaxo, Startup Nation, Cofoundr, and Meetup.
Private Equity Firms
Private equity firms provide access to everything from a few thousand to millions in investment, mostly to the early stage start-up who has great growth potential across a wide range of industries.
But, Private Equity investment comes with a price i.e. they sell their stake a few years later after investing into a start-up to get a significant profit. According to Private Equity Network, private equity firms have already invested around $347 billion till 2012 in 2,100 companies in the U.S. If this seems like a venture you are looking for, then follow this Venture directory to help you connect with private equity firms.
Online Lending Platforms
As we know their are several restrictions involved in getting a bank loan for start-up and as a startup guy you have many things to worry about. Online lending platforms could be the right choice for you as they serve a similar function. These can be peer-to-peer platforms, non-traditional lending sources, or large investors looking to help you out and profiting from the lending terms. Some credible online lending platforms include Prosper, TrustLeaf, OnDeck, and Lending Club.
Personal Marketing Effort
It’s always great that people find you instead you are looking for them. While you are spending time finding investors through different sources, you can make yourself discoverable through a concerted personal marketing effort. Start denoting your presence where investors are bound to find you, including a website, social networking sites, guest posts on established blogs and personal blog posts, conversations on Quora, and traditional media outlets.
Friends & Family
Getting investment from friends and family is always the best and easiest way finding an investor in a friend or family isn’t a hard task. They already know you, believe in you and are passionate to see you get successful. But before asking for investment make sure to keep your personal and professional relationships as separate as possible by getting everything in writing and clearly explaining the risk involved in investing in a start-up and make sure they understand they could lose their investment. Don’t risk losing friends or family over investments.