How to Find Investors for Business Startup

How to Find Investors for Small Business

Do you need money to grow your business? Are you looking for good investors that will be willing to give you their money so you can use it to grow your business? For most entrepreneurs and startup businesses, one of their major problem and challenge is how to find investors.

Some entrepreneurs have wonderful business ideas but lack the requisite and required capital to launch their business, and seriously desire to seek out investors who can invest in their business.

Some entrepreneurs have been able to put together a good and well-written business plan but still, lack the capital to start their dream business. There are others also who have been able to start their businesses with whatever resources they could lay their hands on but have come to a point where they need that extra help to take their business to the next level.

One of the challenges of starting a business is finding investors. There are however a couple of ways through which entrepreneurs can find investors to invest in their business ideas.

How do I find an investor for my app? How do you attract private investors for a small business idea? What are the ways to find private investors for your startup?

Are you looking to find investors for real estate? What do investors looking for in choosing investment opportunities to fund?

The purpose of this article is to point you to ways and directions through which you can find good investors to invest in your business.

If you have been running up and down looking for investors for your business, here are some of the ways through which you can find them.

1. Angel Investor Networks
For new businesses, an angel investor can be a great resource for the entrepreneur and the business. Angel Investor Networks are business associations of angel investors who have several business interests and have the capital to channel into businesses of their interest.

Angel Investor Networks is a great place to find investors for your business. You can seek out angel investors in your locality or region. Another good and available place you can find angel investors is online at funded.com.

2. Venture Capital Firms
Another place to find investors for your business is by seeking out venture capital firms. Seeking out venture capital firms is usually a great way to find investors for your business. Venture capital firms deploy their resources to ensure the success of your business. They are also involved in the core decision-making process of the business and their investments are usually long-term in nature.

As the venture capital firms are involved in the decision-making process of the business, they design business structures that can protect their investment in the business. Let’s not forget the role venture capital played in the growth and success of Facebook – popular social networking site.

3. Family and Friends
Another way to find investors for your business is by talking to your friends and family members. Your friends and family members who have investable funds can invest in your business or even get their friends and family members to invest in your business.

Never overlook close friends and family members when it comes to finding investors for your business. You can never tell; they may end up giving you the fund that you want.

4. Private Equity
Private equity is another way through which you can find investors. Private equity investors can make investments in your business especially if it is in its early stages because they are chasing growth. Presenting your business plan to private equity investors can be a great way to find investors for your business.

5. Social Networking Sites
Social networking sites such as LinkedIn is another way an entrepreneur can find investors. Another way is through business Facebook groups that have various professionals from diverse industries who are seeking to make investments in startups where they can lend their capital and experience.

There are also a number of other professional social networking sites now, such as Meetup, and Xing. Having the right profile on this social networking sites can be a good way to find investors.

6. Your Church or Religious Group
Another way for entrepreneurs to find investors is through their various religious groups. Members of the same religious group seem to know each other and tend to share the same beliefs and ideologies.

For the level of familiarity and trust that exists in the religious group, the entrepreneur can share his/her business plan or idea with members of the group and get them to invest in his/her business.

7. Through Crowdfunding Sites
This is the most popular method most entrepreneur use to find investors for their business. There are crowdfunding sites now where an entrepreneur can pitch his/her business idea and get funding from the members of the public.

These crowdfunding sites have different members of the public with diverse economic backgrounds and they are all looking to invest their money in ideas that interest them.

Some of the crowdfunding sites are IndieGoGo and Kickstarter. Each crowdfunding site has its own way of rewarding members who invest in ideas, so the entrepreneur should understand the individual rules governing each crowdfunding site before deciding to use any of the platforms.

8. Peer-to-Peer Lending Platforms
Have you heard of it before? Peer-to-peer lending platforms are different from the conventional sources of lending such as banks and co-operative societies. Peer-to-peer lending platforms are a great way to find investors who are willing to make debt investments in your business. Amongst the popular peer-to-peer lending platforms available are Lending Club and Prosper.

Through any or combination of these listed ways, an entrepreneur can get investors for their business ideas.

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