Tue, 12 Jun 2018
One of the most challenging parts for any start-up looking for investment is finding and securing the right investor. As an ambitious entrepreneur, you may ask yourself – how do you find the right investors for your business? How do you pitch to investors? What should you focus on before you meet with investors? The competition for funding is high, as angel investors and venture capital investors receive dozens of pitches per day. Our years of diverse experience and an expansive global network of investors at Challenge Advisory has given us the ability to carefully cultivate data on how companies can find the right investors for their business.
The initial step in getting investors for your business is developing a concise and effective business plan. Explain what your business does, what your objectives are, your ideal target market, projected sales for at least the next five years, and how you aim to be different from competitors. Memorise this plan and be able to thoroughly answer any question an investor may ask when you pitch your plan to them.
Accelerator programs are the perfect way for start-ups and budding entrepreneurs to put their ideas into action. Many investment firms, universities and large established entities offer accelerator programs to meet other founders and receive real-world guidance from industry mentors. This support will drive start-ups in the right direction, with the program often concluding with a Demo Day presentation in front of an audience of investors. Take a look at Challenge Advisory’s accelerator program.
Adding an expert to your team is extremely valuable as industry experts are key to attracting investors to your business. Many investors will trust a business that is connected to a well-established name in the industry. Investors will want to put their money into a business that has a chance of giving them a big return on investment, and having an expert on board will provide them with this assurance. An industry expert on your team will also mean that you can utilise their connections in the sector to find viable investors.
Although it may be alluring to reach as many investors as possible, keeping the initial focus on 40-50 investors who would be a good fit for your company could save you time and also bring results. Conduct research and compile a list of investors that have invested in companies that are in the same sector as your business, but not a direct competitor. Getting in touch with fellow entrepreneurs can help you identify potentially interested investors that you are not aware of, or alerting you to investors known for being difficult to work with or who aren’t actively investing. Once this list is compiled, research whether you have mutual acquaintances with the investor, as investors often favour businesses that are introduced by a common contact.
Do Your Due Diligence To Find Investors
Websites such as LinkedIn, Microventures and AngelList can be an excellent way to source investors. Make sure to create a clear and credible profile to establish credibility and make an impressive online first impression. An AngelList profile is a great platform for you to learn more about investors and for them to learn more about your business. It makes it incredibly easy for people interested in your sector to find and connect with you.
For more information and opportunities on how to secure funding, visit our Funding page or start a discussion with our Head of Funding, Chris Burns, below: