How To Recruit Investors For Your Startup

We all are aware of the fact that startups are facing many challenges to survive in this competitive market. Companies like Zomato, Paytm, and Swiggy also faced various circumstances when starting their journey. Now, they all are dominating their industry and reshaping our way of living. Let’s take a closer look at how these organizations achieved success in their arena.

Well, here comes the question, what helps you establish your brand name? There are numerous facts that will help transform your business idea into the successful one that you always envisioned. Yes, you need a valid business idea that’s unique and solves your client’s pain points. Yes, you’ll need effective business and marketing strategies to get started and put yourself out there. What you’ll also need is proper knowledge on how to recruit investors for your business – and not only an investor who’s in it for the money but who can guide you in the ever-changing business landscape.

Here are some tricks that will help you get the right investors for your business:

#1 Who Are Appropriate Investors?

It’s one of the important works for you to identify suitable investors for your business. Before approaching everyone for funding, you have to do proper research to identify your target investors. On the other hand, you have to maintain effective communication platforms where you perfectly figure out your need and concern.

#2 Have A Status File

After identifying suitable investors, you should maintain a track record to approach them frequently. This process can help you maintain a formal communication with them on a regular basis.

Here, a status file can help you keep everything organized. You can create a list of contact numbers, email IDs, and other contact details. Actually, it makes your daily work easier and more systematic.

#3 Leverage Your Network

Importantly, your existing network is one of the most important aspects – as is managing it. Don’t forget to contact your business groups, your peers and friends. Most likely, you already have someone who can connect you with investors who are a right fit for you.

#4 Create Your Own Pitch

People are not going to give you their full attention to understand your pitch. Make your pitch powerful, succinct, and easy to forward. Investors are busy and they might not have enough time to answer all emails that people sent them. So, prepare your pitch in a way which allows them to cut, paste, and send.

#5 Be Prepared For A “No”

“No” is the word that you’ll hear many times but take it as a part of the game. It’s tough work to appoint investors for your business – you’ll have to work hard to impress them and chances are, this won’t work out the first time around.

#6 Give Investors A Solid Purpose To Reach Out To You

Investors are not sitting around waiting for companies to approach them – they are actively on the hunt. So, put yourself and your product out there. And if your product is not yet live, you can create attention through a pre-launch event. Or you can start conversations on Quora and share updates on your personal blog – all of this helps to bring attention to your solution.

#7 Understand The Process Of Funding

Usually, fundraising is not a quick process. It takes six months, maybe even longer. You have to attend meetings and take follow-ups – yes, you can even say that it’s your second job.

And one of the most important things in nailing that second job is knowledge. Make sure that you understand the investment process and – most of all – understand and know your own numbers. This way, you’ll be easily able to communicate with your target investors.

#8 Apply For Accelerator Programs

No need to introduce accelerators – probably you’ve heard about 5 new programs in the last week alone. So, most startup accelerators are funded as an investment fund – taking equity and giving mentorship and/or funding in return.

They are a platform for you to meet with like-minded founders, get real-world knowledge from industry experts, and understand the current market demand and trends. Some accelerator programs offer a seed investment in return or a Demo Day presentation in front of an audience of investors.

Wrapping Up

On a final note, searching for investors is one of the difficult paths. Introduce your product or project in an impressive and unique way that can attract investors to invest in your business niche. Follow the 8 steps above to put yourself out there and recruit the investors that will help your startup to succeed.

 

 

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