In today’s market, it is said that the most complicated thing before starting a new business is to hit on a groundbreaking idea that nobody has thought about before. Yet, being a new entrepreneur, you will soon realize that getting funding might be even more difficult and time-consuming. So, what should you do to convince top investors that you’re the one and only?
If you’re not sure about the idea, who will be? You have to believe that your startup is valuable no matter what. Show all of its’ advantages, explain what problems it solves and make them think that your product is needed. Be proud, not pompous; top investors know better than anybody else that every project has some weaknesses. Don’t let them point out the downsides of your idea – do it yourself! The fact that you acknowledge them will present you as a trustworthy, realistic businessman.
Bring Their Attention
Don’t imagine great investors sitting in their big leather chairs waiting for amazing occasions to magically appear in front of them. They are also looking for new companies, as everybody wants to be the first one to discover an outstanding startup that will soon be worth millions. Bring something to their attention even before your final product is ready. Put yourself out there and remember that this courtship goes both ways.
Make a List of Strategic Investors
Think who would you like to meet the most and why. Check the history of previous investments of the investor you want to talk with. Don’t waste yours and their time, make sure that their philosophy fits your idea. Good research might be the key to making the whole process of searching for funding fast, effective and beneficial.
Ask Other Entrepreneurs
Make use of other people’s experience. Ask questions about the investors to find out who is a good partner in business, who is now active on the market and which people it is better to avoid. Other entrepreneurs are a fantastic source of information, so don’t hesitate and take advice, learn from their mistakes and consult them if you have any doubts.
Find Common Contacts
Investors receive many pitches every day. For sure, they are not able to focus on each of them, so your job is to stand out. The best way to omit the queue of startups waiting for funding is to find a contact that you share with the investor. A common acquaintance might give you a chance to start a conversation with the potential backer from a rather different level than if you were complete strangers.
Make Them Feel Special
Don’t send a copy-paste message to investors. Instead of giving them some general information about your project that you would present to anybody, craft your introduction and make them feel that they weren’t just a random choice. Try to point out why it’s them who should invest in you. Show them the possible profits they will get from the investment and what a big loss it would be to overlook your idea.
Remember About Pre-seed Investors
You don’t need a ready product to get funding. Angel investors are not always wealthy individuals. More and more influential companies, such as Google, are investing in startup ideas that exist only on a napkin. Being in the right place at the right moment may let you raise a few million dollars, even before you start working on the project.
Not every door you knock on is going to be open. You will get turned down and not everybody will call you back, even if they promised to. Don’t let them discourage you. If they didn’t give credit to your idea, somebody else will. If you don’t hear back from someone who was supposed to contact you, send a quick follow up and share some news. Basically, keep them updated.