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Thursday, July 1, 2021

What are the ways to attract investors for your startup?

What are the ways to attract investors for your startup?
What are the ways to attract investors for your startup?

 Raising money is one of the most challenging tasks an entrepreneur can do to take his startup to the next stage, making sure it is fully functional. It is a scary move, full of rejection, and a failure to raise capital can lead to the end of the startup. A lack of funds often points to one of the reasons why startups fail.

In the past it was difficult for startups to investors, not to mention receiving a call or spend time with them face to face. Now also consider the impact of the corona epidemic and the uncertainty it brings.

The following are some steps you can take to address and attract investors online:

Work on growth and development

If you are raising money expect to get a lot of rejection. To name a few: tech giant Airbnb was rejected in 2008; so don't accept this rejection, instead take into account the feedback/ reasons so that the investor doesn't give up investing in your startup.

Presentations and business plan

Planned presentations to investors are the first step to starting your project. Usually you will need to issue a teaser (2 to 3 pages), often referred to as the “executive summary”. This is in addition to the full planned presentation (about 10 pages). For the full presentation platform it is recommended to make two copies, one for sending an email and the other for the actual presentation in front of investors.

You should also prepare a strong business plan, including a deep dive into everything related to your business, from history to vision and mission, a detailed and concise business model, marketing, operational and financial goals, Talent Acquisition, use of investment funds and exit strategy.

Read also: The final offer.. Say everything in a minute

Do the work

Look for investors who invest in startups such as your company's or industry you; or your site. Often entrepreneurs waste a lot of time communicating with every investor they find.

While quantity is important, approaching high quality can lead to good results. Investors can be classified by the “size of the amount of money” they invest, which is often associated with the stage of raising funds. There are initial investors and investors in smaller stakes compared to investors in Series A and later stages.

There are geographically neutral and sector-neutral investors, but there are also many who are located in specific locations and sectors.

Forming a network of relationships

Connect with players in the startup sector. And don't limit yourself to knowing your competitors, but also know and interact with thought leaders, key players, experts and stars.

Use your Network

Choose from your Network, select the best entry points and ask to identify your target investors.

Do not use public emails and waste their time. Be brief and specific in the subject or first line of your message. Write a short, gentle, specific message in the text of your email. Remember your goal is to reach the next stage, such as: a phone call or a personal interview.

Interaction through social media

The investors who are actively looking for investments involved heavily in the ecosystem around them. They're watching the latest issues, trends, not only in the sector/ sectors that interest them but also global trends.

So build your relationship with investors over time; by interacting with them through social media, following them on Twitter, read their blogs and comments were well thought out. You can start by asking for advice on specific issues related to your startups or the sector in which you work, and in case you get useful feedback implement them.

Ways to attract investors for your company
Ways to attract investors for your company

Read also: Unique sale offer.. How do you recruit a client for you?

Attend virtual events

From virtual conferences to webinars there's plenty to go for. According to” Venturebeat " virtual events arose in 2020, and the future will be a mix of virtual and physical events; so choose events that are beneficial to your startup, either in terms of theme or the presence of target investors.

And there are companies sponsored by big tech companies like Oracle, which bring together innovators, technology leaders and investors. You can also set up investor accounts, podcasts, and more recently enter into “audio discussions” with the “Clubhouse”app.

Building an online presence

Providing high-quality content marketing strategy featured across social media will bring you positive interest from investors. You can also keep in the city and regularly on sites like Medium or LinkedIn about innovations in your sector. You can then use that content or your social media platforms as the entry point for investors.

Check if your investor website is open for communication

If you send a convincing email you are likely to be noticed. There's a lot of venture capital firms reputable contact form to allow you to enter their community, a network of experts, entrepreneurs and thought leaders.

Another useful source is the Newsletter, subscribe to it, it is the place where you learn investors ' investments directly, the things they are happy with, as well as the reasons and events in which they will participate.

Display via the first digital accelerators

In addition to accelerator programs common open always for investigations of serious investors, there are those programs that are administered by the investment firm itself. One of the latest programs launched is the 8-week unconventional Digital Acceleration Program run by the company “Unconventional Ventures” for entrepreneurs in the Nordic countries.

You can get help in improving your startup and in organizing your financing rounds, as well as introducing investors, through “Demo Day”, a typical component of any accelerator program; where startups make a presentation in front of a crowd of investors.

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