Finding the right investor is an onerous task and it could go right or go wrong. Your ultimate goal shouldn’t only be about securing a great deal. I say that because, I’ve seen businesses plummet because the investors were bullish, unrealistic and downright uncooperative. In the end it affects the startup, your brainchild.
Not just finding an Investor
It’s not just about finding an investor but about finding the right investor. Remove the “I’ll take any amount of funding from anyone” mindset. Find investors who understand your industry, and see if they share the same philosophy as you do. In the end, they should add value to your idea when needed, right? Search for someone who can mentor you and pull you through at hard times and not blame your for the things that went wrong.
A well laid out profile on LinkedIn and Angel.co
LinkedIn and AngelList are some of the places where people go to get to know about new startups that emerge every day. It always pays to keep a well detailed profile, with a bit about your background, about your startup, what is the problem that your product is solving and how it is solving. This lets a potential investor know where you are heading. Include your direct email id, so they can get in touch with you to know more.
Read more: Chris Barton, Co-Founder of Shazam’s important tips for Early stage Entrepreneurs
A well thought our elevator pitch
Respect people’s time. You aren’t the only one with an idea, bumping into them that day. A short summary of your pitch which highlights the primary concerns (what? how? where? who?) of your idea or startup all put together in under 5 minutes is great. In most cases, make sure your pitch is simple for them to understand, so they can ask you questions based on what they’ve heard. Also, a simple pitch will be memorable. You don’t have to pack every minute detail into your elevator pitch. You can always elaborate once they’re interested. Make it short, make it memorable.
Adding a business angle to your Idea
When you are presenting your idea to an investor, a strict business plan can go a long way. Throw out all the overt unrealistic assumptions that you may have about your sales for the year. Do a thorough research on your market, ask yourself what are you doing differently than your competitors that can garner more users. Validate, re-validate till you get the exact number.
Networking & meetup
“Out of sight, out of mind”, holds true. Meet people often. Be proactive while attending networking events, take every opportunity to introduce yourself and about your startup. It’s okay if your pitch isn’t good the first few times. Remember, it only gets better with time. The idea is to get more people familiar with your startup. In the process you might actually meet a potential investor who understands your market.
Take value from Feedback
The most important step is to get a feedback on your idea. It’s an instant validation that can decide the course of action. Again, Implement only what’s necessary.
Have a skilled and supportive team
Investors mostly invest in people, than they invest in your idea. A rock star team will inspire confidence in the person who is investing in your idea through you.
These are some of the tips to find investors, that can help you. Got more to add? Share it in the comments.