A startup business would like to be successful until being capital supporting. That’s why the investors and the investment funds are the first options for the startup generally approach. In addition, they can also support the startup in other aspects such as experience, relationship, spiritual value, investor’s image brand, etc.
How to break the less confidence inner you? How to present your crazy business idea in front of the investors so that they can get into a deep understanding of the value of your idea?
Here are Five wise steps to approach the investors!
- Know exactly your product
First, you need to determine what developing stage your product is in. Then consider the purpose of capital use, the level of financial risk, current and future business, etc. Especially, specific data, clear development plan, profitability, market size, particular the product roadmap and business plan in the next 3 – 5 years.
Second, you should pay attention to how much money you need, how do you spend it and how it will affect the cash flow. Therefore, this requires someone with a strong background in finance and accounting to assist you.
Investors always have great researches about the market, so just what your ideas/products match what investors are looking for. The high proportion of success is expecting.
- Find out information about investors
Major corporations such as the Angel Investors’ Association have many branches not only in the United States but also throughout the world. Besides, they own a large database for the investment of enterprise. For instance, websites like Angels Den and AngelList provide a wealth of information that allows young CEOs to reach out to potential investors.
You should approach sources of information, official website, and find out investors carefully before approaching. It is difficult for capital hunters to change them because of investors’ different stance. Therefore, remember finding out information about investors is very essential.
- Know how to choose the investor
The more investors and investment funds you have, the more benefits your corporation gains.
Currently, capital is mobilized by two main categories: investment funds and individual investors.
Investment Funds are usually large, however, the procedure is long and the terms are very tight. On the other hand, the relationship that funds held will help you a lot.
Individual investors often decide to invest very quickly and the procedure is also brisk. However, the capital supply is rather limited.
Finally, you should be alert to seek the investor in accordance with the orientation and vision of the company. If you and the investor have the same vision, it will make you feel more confident. And their experience will also help the company to accelerate its implementation.
Traps in the market, the status of big fish to swallow the baby is much and understand that no one gives you nothing. So, consider what the company will be, what to lose? Apart from the capital and experience, what kinds of risk are hidden?
To sum up, when choosing a knowledgeable investor as well as having the same vision, you should consider two factors: the amount of capital they will invest and the experience of the investor in the field of your company.
- Access to investors through referrals
The smartest way to reach out the investors is a referral or recommendation from the reputable person. Normally, many investors chase outstanding projects. Predominantly, the investors will pour capital into referrals from a reputable individual owing to as a sure success.
If you know this then it is quite easy, but if not, you can use the LinkedIn – social network for businesses looking for the necessary relationships to approach investors.
The success rate of Startup is not high unless these relationships, nevertheless you can reach out in a traditional way and present ideas confidently to raise capital.
- Access to investors through events, seminars
Young starters should participate in networking events such as Launch Meetup, Pitch Bootcamp, Mobile Day, etc. You can reach out to the investors by searching for information about big events, seminars or contests like business and startup competitions.
Moreover, there are lots of the domestic events and international investors events are now organized. It is not difficult for you to read information and enroll.
This is the best place to attract investors that you can contact and build relationships. Join it if you can “post forum” on stage to introduce about.