How To Find New Investors for Your Startup
All tech startups have one thing in common: they need money to make their dreams a reality. Even founders fortunate enough to have their own capital to start a business won’t be able to expand and see their vision come to fruition without the help of external investors. These are investors who see something they like about your company and provide funding for development or expansion in exchange for a portion of your stock. But how exactly do you go about sourcing startup investment?
Use Your Existing Contacts
You know someone who knows someone who knows an investor interested in your tech offering. If you disagree with this statement, it’s time to start talking to your existing contacts about who they know in financial circles that may offer a startup investment. Even if they can’t give you a direct line to the head of a venture capital firm, you might get some names to research. Start putting your feelers out and understanding what type of investors you’d be happy to hold shares in your company. Start with who you know, then move on to what you know, via careful research.
Use Your ICP: Ideal Customer Profile
ICPs aren’t just for customers and clients. Your ICP paints a picture of an individual or organization that sees the inherent value of your product or service. That naturally includes investors and other stakeholders. Be efficient with your time and resources by targeting investors you want to work with in a similar way to how you target sales leads.
The major difference is that, in addition to considering how much your service matches the potential investor’s needs and portfolio, you can include how closely they match your requirements in terms of values, ethics, and track record of repeat investments. This allows you to focus on investors who are more likely to stick with you and invest in subsequent rounds of funding.
Be Present Online and in Person
Creating a stir is tough in a crowded tech market. FounderJar reports that, as of December 2022, there are 70,966 startups in the United States, more than any other country in the world. A fifth of all startups are in fintech, showing how densely packed tech niches are becoming. It’s clear that new companies need to make waves in order to stand out from the crowd and attract startup investment.
One way to do this is to be everywhere you can make an impression: tech conventions, fundraising events, online events — anywhere that’s appropriate for you to attend, where you can talk to people, raise your profile, and enhance your company’s reputation. We’re not saying attend every Zoom meetup you get invited to — you would have time for nothing else! Pick the ones where you know the people attending can help further your business’s vision or put you in touch with potential investors. It’s also great to put yourself forward to give supportive or educational talks or demonstrations at events. Positioning yourself as an expert in your field is an ideal way to attract investors.
Build Your Brand
We can’t overstate the importance of creating your brand from the earliest stage possible. A consistent brand that becomes quickly recognizable and associated with the solutions you provide is a sure-fire way to attract the types of investors you want. Make sure your brand aligns with your company values, and use your business vision and goals to drive the direction of your branding.
Final Word
Branding can be challenging for startups with limited budgets that want to put every penny into improving their product or service. However, the returns on investing in becoming a trusted, recognizable, and recommended brand could be phenomenal. Book a 15-minute introductory call with our team and discuss how we can help you find the startup investment you need.
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