It’s no secret that funding is every startup’s problem. But even so, it doesn’t mean that you can innocently pitch your idea to every investor you find. Startup should be a little picky too. Because not every investor is good for your financial health. So how do we know that an investor is the right one for us? Let me show you the tips.
Connect and Get Recommendations
There are a lot of startup founders who want to meet an investor and pitch their idea for funding. So it’s basically a competition. To outsmart this situation, you can ask for a recommendation from people. Sirish Kumar, the Founder of Telr, suggest this to clear your path to the investor’s heart. He gives a practical example that’s easy to follow; “Explore the profile of desired investors on LinkedIn; should you have the common connection, ask for a recommendation”
Look Beyond the Money
Funding is not just about the money, but it’s also about the ‘person’ who invests to you. Your startup investor should be the person you can discuss the idea with, inspire you, and give you extraordinary advice. “Avoid opting for investors who may give you the desired capital, but are in just for the smooth ride and offer no value addition of any sorts”, says Sirish Kumar.
Having an assessment from 10 perspectives is way better than one. So having a group of investors from different backgrounds can be very helpful to solve your startup problems. It’s like you hire a certified accountant, an experienced marketer, and a branding expert (Which you can find at Gaekon.com) to consult you over a problem. You can imagine how excellent that’d be.
Time to Pitch Your Idea
The key is a trustworthy image. It means that you’re being honest in every aspect of your business and prove to the investor that you can hold the success. To convince them, I suggest you use an engaging presentation and strong branding. It’s globally proven to lock the investor’s attention to you. I’d personally suggest you go to Gaekon.com. Their designers are pretty good with this. Besides, it won’t cost your startup a bomb. Add to that, you can show the data of some small success (even the tiniest one) you’ve reached so far along with the growth projection of it – short term and long term. As mentioned by BusinessCollective, it can make the investors believe you more.
Do you have any other tips to find the right investor for a startup? Tell us the detail by leaving a comment below. And by the way, if you find this article helpful, please help us share it with the world!