Raising the funds you want and from the right investor may be the thing the most crucial and complicated for a contractor.
While finding an investor will give you some longevity, match with the wrong risk of penalizing you greatly.
The task is tedious we agree, such is the natural instinct of an entrepreneur to work on the concept and the strengths of his product instead of improving his sales skills in order to secure the investment. However, practicing pitching and approaching the right investor is also essential.
Here are some things to keep in mind for attract the perfect investor.
Find an investor who shares your vision
Instead of looking for the perfect match, you should stay focused on investors who share the same vision as you and that your business.
Before the fundraiser, review several companies that have done the same and find the commonality between the investor and the startup in question. Know that if an investor is supportive of individuals and familiar with the product, the chances of long-term success are much greater.
Prove your commitment to investors through your Bootstrap
Whether you are a solo entrepreneur or in the process of developing a start-up with other people, you most certainly start by financing yourself.
You need a business model and pull-ups to get attention! For the same reason you must invest all the resources you have in order to prove your desire and your conviction to grow your business.
By self-financing, you affirm your own commitment to your startup.
Even if you raise funds, always aim to achieve a positive cash flow in order to remove this dependence on investors.
Be aware that they will seek the dividends and do not have the money in real time, indeed it is possible that they will send you the money under several different conditions and it will go back over time. For example, if you reach a certain goal you unlock new funds and so on.
Grow your network and ask for recommendations from other startups
In general, investors are literally bombarded with meeting requests to listen to pitches, and most are ignored.
To have their full attention, you must have a large and influential network. Go to startup events and interact with mentors, investors and participants, keep contacts and grow your network!
Do not be superficial in your meetings, but really discuss startup ideas that cross your mind, give your opinion and your feedback on other projects.
Investors mostly invest in people and not in ideas.
Also explore the investor profile on Linkedin. This can help you connect faster through an acquaintance or friend who can recommend you to them. Do not neglect anyone.
To find an investor, also look for a mentor to help you
An investor in general does not just bring the money on board the business and leave.
No, an investor seeks future growth, growth that he will cause with his financial investment but also with his commitment as a mentor. You will work with an investor who will inspire you, who will help you think differently, who will discuss different strategies to grow, in short, an engaged investor.
Avoid at all costs, investors who just bring money on board and leave you to row.
Prepare a kiss-ass pitch to find an investor for your startup
After having identified the much desired investors, it is important to prepare a thundering pitch. Yes, you might as well put the odds on your side, right?
Improve your pitch on the key points that these investors are interested in.
If you want new ideas to present your startup and prepare a kiss ass pitch, continue to participate in startup events, don’t hesitate to move to other cities or even other countries to grow your network as much as possible.
And who knows, one day maybe you too will find the investor of your dreams and turn your idea into an established startup.