One of the most classic ways to obtain financing is through investors. Many startups and emerging businesses continue to use them because they’re trustworthy and contribute a large amount of money. Although to tell the truth, getting investors to fund your project may not be so easy. Here we’ll explain how to get them to support you.

How to get investors to finance your business

First of all, there are several points to consider before looking for investors. Your business, idea or startup must be prepared in depth and not give room for doubt. That means, you must have done a study of the market where you’re going to enter and ensure that your project is viable. Investors don’t like an ambiguous, non-competent business that doesn’t promise a truly good profit.

There are two things that are a fundamental part of the success of a business. That the idea itself is good and that the team behind it is competent enough to do an excellent job. Experts always emphasize that if you want serious investors, you must be a serious investment. Show that you’re an expert in the area of ​​your business and that you understand how the market moves where you’ll enter.

What should you take into account to present your business?

Effectively, you have to work on presenting your business. Well in advance and long before you even consider looking for investors. You have the mission to turn your idea into an idea of winning and promising appearance. Demonstrating to anyone that it has the competitiveness, knowledge, resources and future benefits to be a brilliant business.

How you’ll present your business depends on you. But there are key aspects that you must take into account. The problem or need that your product or service solves. The solution you offer and how it differs from the rest. It never hurts to include the market analysis, competitive advantage, business model, sales and marketing plan… Don’t forget to add a projection of what you expect to obtain from the business. And an attractive and reasonable investment proposal.

presenting business to investors
The way you present your business may vary according to the way you approach the investor. There’s the traditional way through slides but you can go further and create custom graphics or a brief but detailed explanatory video.

Create an investment proposal

First of all, what’s an investment proposal? It’s a presentation aimed at potential investors. It’s basically about answering certain key questions and other aspects. This is what’s really going to interest investors beyond what was mentioned in the previous topic. Which doesn’t mean that you should neglect or omit those points that are equally important to your business itself.

In the investment proposal, you must clarify some things reasonably. How much money do you need, what do you intend to use the money obtained, how do you plan to use it… Explain also what you’re looking for: a partner investor, various investors, and so on. And if you have an incentive or benefits plan, it’s not superfluous to include it. Doing this allows you to more likely attract the investor you’re looking for.

finding investors for a startup
Finding investors for your business is not just about finding someone to give you the money you need. It’s also about finding an investor that aligns with the values ​​and goal of your business. Source: SmartInvestor

Finding the investments

We’ll explain the vast majority of ways to find investors. Some entrepreneurs tend to go to the most prestigious business schools because there recognized investors can be found. Especially within universities with well-developed business and entrepreneurship programs. If you have a network of professional relationships, you can also ask someone in your circle to help you find an investor.

In cities there are often entrepreneurial communities where people meet to discuss these matters. These places are perfect for networking and finding an investor. Or someone who can direct you towards one. It’s recommended that you make a list of the candidate investors that you’re stumbling upon. So that you can select the one that can be more in line with your vision and your objectives.

looking various investors for a business
Never stay with only one option. Carefully review the investors you have at your disposal, including those you want to approach and those who’ve already made proposals. Evaluate which is the best option for both parties. Source:

Finally, don’t discard the potential of the Internet. There’s a plethora of websites including platforms and social networks where you can find investors. Just to give examples, there’s: LinkedIn, MicroVentures, SeedInvest, among others. Crowdfunding also lends itself to search for investors. There are equity crowdfunding platforms such as AngelList or PeerRealty where you can find several of them.

Seed accelerators, through mentors, business incubators... The list of options becomes long. Regardless of what you choose, take into account not only the presentation but the investor candidates you have available. Analyze what you have and choose wisely the investor that’ll allow you to start your business towards a future return on investment and high profitability.

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Related: What Is Private Crowdfunding?

Ready to look for investors…?