Once you have a viable business idea and know how much money you need to start up, the next step is usually looking for investors. Convincing investors to fund your business is an uphill task. You need to be aware of the various options available to you so that you can explore as many of them as possible until you finally find the most appropriate investor to fund your business. Murray Newlands, an entrepreneur and business advisor has written a guide on how to get funding for your startup. Below are some of the best options for you.
Crowdfunding sites are some of the most reliable places to find investors to fund your business. The most interesting thing about them is that different sites will connect you to different categories of investors. If you prefer to source your funding from the general public interested in funding the next big thing, you should consider sites such as Indiegogo, Kickstarter and Pererbackers. On the other hand, if you wish to get your startup capital from philanthropists who believe in helping people reach their dreams, consider sites such as RocketHub. There is also a good number of equity crowdfunding sites that may be useful to you.
There are angel investors who are not only willing to fund your startup but also to provide mentorship, useful advice and access to their network of contacts. There are several sites including Angel Capital Association, Funded.com and Angel Investment Network where you will find thousands of these investors. The investors provide information on the type of investments that they seek to fund. Angel Capital Association has made it much easier for you to find angel investors in your local town by providing a directory listing by area and platform. If you are in the US, it’s useful to know that City Chamber of Commerce groups has partnered with angel investors with the aim of helping simulate new business opportunities for the relevant city. Some of the cities concerned include Los Angeles, New York and Chicago.
Startup Launch Platforms
There are specific platforms that provide research, information and assistance to entrepreneurs. Most importantly, they show you how to get connected with investors. One of the leading startup launch platforms is Startups.co which provides a convenient channel for locating investors efficiently. Startups.co is by far the largest startup community in the world with more than 14 million members. You could also check on Gust, an upcoming startup launch platform that is doing pretty well.
Accelerators and Incubators
Startup accelerators and incubators provide advice, exposure to other investors and seed funding. They also avail a whole lot of other investor resources to ensure that your business grows and flourishes. Accelerators and incubators will even offer physical space to set up your office, which not only reduces your expenses but also makes it possible for them to work with you directly. To get funding for your startup, check out TechStars, 500 Startups or Y Combinator among others.
Professional and Social Networks
There are various networks where you can connect with all sorts of investors across different business segments. These networks help you connect with investors not just from your own country but across the globe. Some of the leading social networks where you will find investors are Startup Nation, EFactor, Plaxo, Xing, Cofoundr, LinkedIn and Meetup.