How To Get Investors For An Idea

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How To Get Investors For An Idea – Because investments are a risky venture and often fail to yield expected returns (only half of startups pay), investors choose startups carefully.

You need to consider many factors that can convince business angels to invest money in your startup. For example, one of the factors is a business area they know: The Inc. Magazine states that angel investors are likely to invest in what they know so that they can make smarter and more unbiased decisions.

How To Get Investors For An Idea

How To Get Investors For An Idea

A good team is also important. Peter Lynch, an American investor, emphasizes that angels realize that they deal with people first. Therefore, they assess your skills, motivation and professionalism that are critical to business success.

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However, your product is the most important. Investors admit that when evaluating a startup, they wonder how quickly they will get their money back. According to Randall Reade, an American angel investor, it is nearly impossible to get financing without at least a minimum viable product (MVP). Investors are inundated with requests from other startups; so they have to “touch” your product and try it out to make a good decision.

So create an MVP ahead of time to stand out and demonstrate the viability of your idea. A minimal viable product will help you test the waters and get feedback from your audience before you even get started. This allows you to avoid malfunctions and financial losses.

However, remember that having an MVP doesn’t stop you from finding an investor. You need to substantiate your idea with extensive data such as a marketing strategy and business plan. This post aims to find out how to get funded with just an MVP and not go crazy in the process.

Of course, to convince an investor to fund your project, you need to prove that your startup idea is viable. Traditionally, startup owners opt for a SWOT and business plan to detect external factors that can lead to the failure or success of a project and to indicate business goals and the means to achieve them.

How To Pitch Business Idea An Investors Perspective

However, more and more startups rely on a Lean startup methodology to present their product. Simply put, a Lean startup approach is based on validating a business idea by introducing a minimal viable product rather than focusing primarily on launching a full product.

According to Eric Ries, creator of a Lean methodology, all startups operate in an uncertain environment; therefore, you cannot be 100% sure of the success of your business idea. To solve the uncertainty problem, you need to build a raw product with basic functionality and see if it meets people’s needs.

One of the differences between angel investors and venture capitalists is that angel investors are often motivated by something more than just making money. For example, business angels are willing to help startups succeed in a particular field.

How To Get Investors For An Idea

However, angel investors tend to value the most valuable asset: people. According to a Forbes article, investors are likely to invest in a startup with a good team and a good product that can potentially pay back their investments. The following tips will help you get a team that your investors will love.

How To Find Investors For My Business

Many successful companies are often associated with their creators rather than their products. People often mention Steve Jobs and Steve Wozniak when they talk about Apple; Facebook is associated with Mark Zuckerberg.

Speaking of Steve Jobs, people who knew him personally always point to his fantastic enthusiasm and energy radiating in his eyes. In fact, everyone agrees that Apple was most successful because of the charismatic and persistent Jobs.

My point here is that you have to look for people with talent and energy who inspire the rest of the team. Nolan Bushnell, founder of Atari Inc., wrote that you shouldn’t waste your time on people who just come to work to make money and live. Instead, it’s better to hire people who come to you with tons of ideas, not polished resumes.

Many companies practice hiring people even when there is no suitable position for them. Certainly, finding a first-class employee is not easy and companies realize that there may not be a second chance to get hold of such an employee. But while large companies can afford to pay six-figure salaries to keep their employers, startups have to stand their ground.

Investment Opportunity For Business Idea Funding Proposal

If you hire someone for a position that doesn’t even exist, you are appointing them to a meaningless position and you will be given useless assignments. Without challenging tasks, talented employees lose motivation, doing more harm than good for your company.

Another drawback is overcrowding. According to Jason Fried, CEO of Basecamp, hiring all the great employees causes problems. To involve people in the work, you start with ‘artificial’ projects that lead to additional costs of time and money. Besides, no one likes boring tasks.

Tenants: independent people who generate new ideas and put them into practice. Those who do the work just do the work for you, they don’t need your control or your nanny. These people are able to organize themselves, determine their workload and deadlines, and manage their time efficiently.

How To Get Investors For An Idea

Managers are especially valuable from a remote working perspective. If you work with geographically dispersed employers, you will not be able to physically contact your employees. However, with proactive managers, you can trust them and get the job done.

How To Get Investors Interested In Your Idea

Company culture isn’t just about a set of rules that everyone should fit into; Company culture is also about sharing the same values ​​and being on the same wavelength. For example, Zappos claims that his employees are “a bit stupid and adventurous, but they are also humble and willing to help with any obstacles.”

Think about your company culture and ask yourself which people you would like to see around you. Which values ​​are important to you and your company? How do you want your business to be seen by others? What things do you want to associate with? How is the company culture promoted?

Remember that great corporate culture doesn’t happen overnight; you need to engage your employees in great activities, create company policies, promote culture, be an inspiring example and more.

After creating a business plan, putting together a great team, and building your first MVP, your next step is to find an investor. At this stage, don’t dive into getting financing as quickly as possible.

How Can Investors Tell If A Company Is Genuinely Purpose Led?

People are looking for a team of like-minded people and qualified professionals, so why not follow the same strategy when looking for an angel investor: someone who can support you financially and with relevant advice?

One of the touchpoints that will put you in touch with an angel investor is an industry you focus on. Ralph Kroman, a corporate law expert, says a typical business angel likes to invest in a trade he knows. According to the Halo report, IT (37.4%), healthcare (23.5%) and telecommunications (10.4%) are the most attractive areas.

Also, angel investors are more likely to come into contact with companies that are geographically close. Since many investors like to be involved in a company and offer their advisory and advisory services, they like to get in touch with you regularly and have a chat over a cup of coffee.

How To Get Investors For An Idea

Remember that angel investors are social people who like to network; they often belong to groups and associations. Consider global platforms such as AngelList, F6S, Gust Launch, and Tech Coast Angels that help you connect with an investor. However, there are platforms for a specific location. For example, Angel Forum and Angel Capital Association who prefer to work with Canadian and American startups.

How To Get Funding For Your Business Idea

Specialized events such as meetups and conferences are a great opportunity to speak face-to-face with your potential investor and make a good impression.

Besides the angel investors themselves, you can meet people who can refer you to an investor. Since business angels often rely on referrals and recommendations when choosing a startup to invest in, it pays off in the end to connect with as many of the “right” people as possible.

At events such as AngelSummit.io and Webit Festival Europe, you can hear venture capitalists and angel investors sharing startup and mentoring best practices. Or, if you want to pitch to a potential investor, you should attend events such as SVOD, Charleston Angel Conference, and MoneyConf that are held annually.

First, investors are ordinary people who are driven by their emotions and taste. That’s why it’s important to make a good first impression and show that you have something in common. American angel investor Ron Conway says he invests in startups because he loves helping entrepreneurs and seeing them learn and succeed; he also values ​​teams that share his opinion.

Angel Investors Want To Know,

As you can see, getting financing is not easy. However, it is worth it: in addition to financial support, you will also receive advice from more experienced people who generally know the industry and the profession well.

Of course, the above suggestions cannot be applied to all companies. Remember that you and your startup come first; Consider your background when looking for an investor and choose your investors well.

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How To Get Investors For An Idea

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