How to Get Investors for a Start-up

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Even though it was not really possible to gain attention of the investors easily earlier, it has now been possible, due to the change in perspective of the investors over the past few years.

There are various investors that one could consider looking for depending on their start-up. Here are some ways:

Family & Friends

Family & Friends could be the first investors that one could think of to start their business, as we depend on them for both emotional as well as financial support.

There are 2 ways you could ask for financial support from your friends and family; either asking them for loans or asking them for investments. It is really important to be firm of what your business is and to be able to present it the way you would have otherwise done, if for a private investor.

However, there are risks that one could think of when having a close member as business partner or loan provider as business also consists of risks. Any chance of failure may or may not result in loss of business along with the loss of relationship.

Angel Investors

Angel investors are individuals of high net-worth who offer financial aid along with resources. They also have a good background to make your start-up a success. They are highly beneficial for start-ups who need some funding during the early stages of escalation. The capital and aid are provided in exchange of some equity in the start-up. Below mentioned are some of the angel investors that you could look for.

AngelList is a website that works towards raising funds for tech start-ups and aid in launching their business with the assistance of angel investors.

Coffee Mug is an online platform wherein the heavy lifting of connecting you with a relevant member based on your long-term goals and short-term needs is done.

Life Science Angles is one of the top angel investment groups that focuses primarily on such industries as biotechnology, pharmaceuticals, medical devices, and diagnostics.

On Startups is a fantastic website that can be highly beneficial for any young start-up.

Crowd Funding

Crowd funding is a great way to get the funds needed for a start-up. It is a type of funding in which a large number of people invest in your start-up.

There are various types of crowdfunding platforms:

GoFundMe is a donation-based crowd funding company. A platform where people donate to the company for nothing in return.

Kickstarter and Indiegogo are reward-based crowd-funding platforms where they get a reward from the start-ups for investments made (usually rewarding them with early access to the product or service of the company).

OurCrowd is an equity-based crowdfunding platform where investors take some ownership in the company. The start-up does not have to pay the investment back to the investors, but they in return receive a share of the profits if the company does well.

Social Media

In a tech-savvy world where everything depends on the internet, social media can be your bosom buddy. It is a really great platform where the rest of the world could discover your product or service and it still is one of the most cost-effective methods for reaching out to a broader audience.

Social media is also an excellent medium to get access to “Events “where you may be able to attain attention of investors for your favourable start-ups.

Regular post and updates about your product become very important in order to get your product or service known. Effective collaborations with influences and direct messaging are powerful ways to get a great start attracting investors and leading to growth.

LinkedIn, Facebook, Twitter and now Instagram are some very famous platforms.

Blogs

Blogging could be one of the most effective medium to lure investors. What is better than sharing your story, explaining your process of ideating and sharing business ideas? You may be able to catch an eye of potential investors who are wanting to invest in start-ups.

Many people maintain a blog that centres around investing and angel investors. So, an insightful comment on their blog could be powerful too.

There would be a lot of degradation when you present your ideas to the investors whether from a person in close relationship with you or other investors but it is important to stay focused and determined to your goals even though you here some NO’s.

The author of this article is Deepak Purohit  founder of  36 Lebzelter

The views and opinions expressed are not of IIFL Securities, indiainfoline.com

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