Starting your business could sound amazing, but have you ever considered taking out your time to list out the things that you are going to face throughout your entrepreneurial journey. You should know you are at the right place if you are looking for an investor. This blog will tell you exactly how to find investors for your startups. We will explain how you can find them and how to approach them so you can be shortlisted in just one go.
The Process Of Finding An Investor
There are not just one but multiple ways through which you can get investors for your startups. You can mention it on your site or social media platforms. Inform all your friends that you need to get investors as soon as possible. Introduce your business plan to them. The moment you get the contact details of investors, start working on it.
Investors differ by the many factors- area, amount of funds given, the product of the startup, etc. you will have to figure out on your own which kind of investor you would want to keep and what investor you would pass. If you are a startup, you will have to look for seed funding for startups in India, whereas if you want to market the product or service you are providing, you will have to go for the Venture capitalist. List your requirements and decide the type of investor you might need.
Top 5 Ways To Get Investors
Investors in India for startups could be categorized into 5 major kinds of investors. Finding them and getting the right kind of help a the right time is what a startup entrepreneur needs in the initial stages of the business.
- F&F- It stands for friends and family. This may be the easiest way to get funds for your startup, but stating the conditions of it before seeking help could save your relation with them. Always know what they want in return. Mostly, friends and family members ask for equity in your company to share the risk with you.
- Bank Loans- Indian banks have opened quite a few schemes in many different parts of the nation to help the startup ecosystem. An entrepreneur in India can easily apply for business loans in banks. They are more than happy to help you with the same. Once you reach your target, you can start paying the loan back to the bank.
- Angel Investors- They are high-net-worth individuals that are willing to help the startups in the nation with their business. They carry expertise in the niche they are investing in. They can be helpful in ways more than just the funds.
- Venture Capitalists- These investors could prove to be of great help at the stage when you want to market your product or expand your business. They do not fund you on their own, they collate the funds of many investors. They pay them back when your business starts to grow.
- Crowdfunding- It is a comparatively newer way to get funds for your startup. Crowdfunding platforms are the ones where you can get funds from multiple investors at once. You have to make your business plan in a way that investors could easily see a bright future in working with you.
Additional Tips On How To Find Investors
An entrepreneur should be aware of the fact that while funds are the only thing that will keep them growing in this platform but it is a necessity for a business to kick off from the ground. Investing in a raw idea could be a big deal for investors, therefore you should know you have to keep your funding pitch solid. This is the only thing that stands to be the face of your plan. Add all the points but do not take much time.
You should know your audience. Do some research even if it demands collecting primary data from people themselves. Ask your social media family to reply to the questions that can help you to know your audience. If you understand your audience, it will be easy for you to explain investors as to how you plan on bringing changes in the concept.