5 tips to attract investments for startups

5 tips to attract investments for startups
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Almost any startup needs to attract external investment for full-fledged work and development. It is difficult to attract investments, but, regardless of the economic situation, there are 5 tips that will increase your chances of success.

Come up with a realistic budget that will help you gain traction

Majority of investors go for companies with proven traction and have discovered their customers. You will require a budget that will assist you to get your first customers and to also make sure that your business matches with the market. Once you can be able to point out your milestones then you can start pitching to investors. Many business startup owners dedicate majority of their time pitching to investors, the process can take up to six months so one needs to properly budget for the additional expenses and fees. You need to figure out your reliable source of revenue and the various expenses you might incur for the year and also look for an extra space in your expense section so as to add funds that will be used in marketing. While pitching your ideas to investors you should clearly show how and when the business will get them a return on their investments, this will in turn make your pitching believable to investors.

Conduct a thorough research on your potential investors

By conducting a thorough research on your potential investors you will be able to save time and money. You need to know who your potential investors are. Have they ever invested in a similar business to yours in the past? Do your business principles meet with theirs? You need to know and interact with them on a personal level. You need to find potential investors who share similar beliefs and interest to yours. This will greatly influence the chance of your business to succeed. Make a point of reaching out to investors that you admire for advice first instead of begging them to invest in your business, through this you might be able build a lasting relationship with them and may result in them willingly investing in your business. By asking for advice you get the chance to see the flaws in your idea and also shows that your value their opinion. Be on the lookout for investors who can add not just large sums of cash but tremendous value to your business, whether through advice or industry hook ups and business knowledge.

Use social media

If you have a strong, positive social media presence you can be able to entice investors easily. Nowadays one can easily connect with potential investors through linked, twitter, facebook and so many more other social media sites. One can be able to pitch your business ideas to investors through the various social media platforms. Through social media you can be able to get more personal information about your potential investors, who they, what their beliefs and interest are and so much more. You can also be able to make notes of topics they frequently post about and use them during your pitch showing them that your values and ideas are similar to theirs. Always aim to create a high quality content about your startup on various social media platforms so as to gain the interest of potential investors.

Start small while searching for investors

As a newcomer in the business world, you can increase your chances of success by selecting small or less known investors who often support your type of startup. Majority of investors prefer to invest in a business that is up and running even if it’s smaller than the one at an idea stage. Continue operating your business while searching for a potential investor. And after your has already established itself very well in the business world and have a million-dollar idea to grow your business even further you can pitch to bigger investors after conducting thorough research on them. Majority of the investors want solid proof that your idea is going to work, nothing is more solid than having real paying clients. Seek customers first then investors second. Be unique and don’t always follow the crowd, make sure you product or idea solves a real problem so as to attract the attention of potential investors.

Try new online capital raising processes such as ICO

Startups can use Initial Coin Offering (ICO) to raise new capital. The process is simpler compared to venture capitalists and banks. Asides from conducting simple transactions with cryptocurrencies, many individuals are investing in cryptocurrencies and as much as you have a good idea or project, you can attract investment through ICO.

Just like in offline businesses, funds play a major role in determining the success of any business venture – especially at the initial stage. While there are several individuals willing to back a cryptocurrency venture, you may be surprised that getting people interested in your business idea will be a major challenge. Also, on monthly basis, there are hundreds of new ICO appears and it is good practise to seek the expertise of ICO consulting agencies like ICO producer to stand out from the crowd in order to get the right investors interested in your project.

ICO have become the most efficient and effective way of attracting investments for startups today. But there is actually a thin line between success and failure in ICO. To get enough fund to kick-start or complete your project you have to strategically present your idea and offering in such a way that it will get to the right people and make the right impression.

The main advantage of IСO projects is that this method removes bureaucratic barriers and intermediaries between start-ups and investors. Thus, the investment in IСO attracts both sides of the investment process.

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