Finding investors isn’t just about finding people with money; it’s about finding the right people with money. So how do you go about finding not only investors, but also the investors you want affiliated with your business?
The answer is simple – research.
In this age of technology, there is an extensive amount of information available out our fingertips. This is especially true regarding information about the movers and shakers of business and investment. The advantage of approaching investors with a start-up company as opposed to an established one is that there is usually some sort of new innovation involved.
The Australian Government has invested a lot of time, money and resources into innovative start-ups, which in turn makes them more appealing to domestic and international investors. If you find the right investors for your start-up you will have a more vested interest in your company and this will more than likely offer consultancy and financial assistance.
Here are some tips on how to find the right investors for your start-up business:
- LinkedIn: This is a very powerful tool when it comes to connecting your start-up with investors and business people whom you may not otherwise meet. Ensure your own LinkedIn profile is updated and active. There are a lot of online tutorials and information about using LinkedIn to it’s full potential. If done right, you will be amazed about who you might come into contact with.
- Networking: Networking is extremely important, especially with those who are in your existing network. Make an effort to go through your contacts and re-connect with them to discuss your start-up business. The best way to instigate reputable introductions to investors is through word-of-mouth and personal introductions. Attend networking events and get your name and business out there as much as possible.
- Investor Hit List: Do your online research and talk to people in your industry to fully understand which investors you would like to target. Angel investors are a good place to start with your research as they offer the opportunity to access investors and ways to pitch your start-up. Ensure if you do create a profile through Angel, that it is accurate and up-to-date. In addition, keep an ear on the latest in business news to see who is investing in what.
- Know your business: Get your elevator pitch perfected! You never know who, where and how you will be introduced to a potential investor and you need to make your first impression a good one. Rehearse a 15 second spiel selling your business and have your facts ready and accurate – especially when it comes to numbers. You may only get one opportunity to meet this person and you don’t want to blow it. You need to know and understand your point of difference.