How To Find Investors For My Business

Find Investors

Entrepreneurs who have lots of unique ideas but lacks in cash or assets to invest in their business dream will need some other source of investment. Now it’s the right time for you to start finding your investors if you are ready with a feasible plan for your company. You should also be clear about how much funding assistance you need for your business.

You have to examine a lot of points before kicking start with a new small business into accelerated growth. Few of the startups and small businesses don’t want to get on too much debt on the earlier stage, but either give up equity to small business investors. Once you are clear about yourself on evaluating all these points, then you would probably understand how to choose your perfect investors for your small business.

Find Investors

Find Investors – an ideal option to establish your business

Each business needs some investment of money for its startup or development. It’s good if you have enough money or assets which can be used to get a loan, or somehow you manage to bootstrap in your business. However, it’s also a better idea to consider finding an investor for your business startup.

Most of the time inputs of the investors are beneficial because three –fourth of the investors are entrepreneurs themselves. It’s the most common fact that a successful business requires a realistic idea and quality of service. Likewise, it also requires a quality investor. Your business can flourish with a valuable investor who works in a similar field, provide ideas, and share knowledge throughout the company development process. It is equally essential that a person should come to an amenable financial agreement that suits you.

You can find different types of Investors around you, as mentioned above, some of them provide many valuable contacts, useful advice for you to assists in growing your business. You should do more groundwork and contact many investors before you decide with the right one for your startup.

Acquiring investors is an excellent choice that brings you a handful of advantages. Each investor provides you with many ideas, and useful tips which help you to grow your business as in turn will get back his investment plus profit.

Why do you need to look for an investor?

Once you have come up with a clear business idea, you should have some investment to startup your business. In case, if you don’t have sufficient amount to invest in your business or if you don’t want to use your assets for emergency funding in your business, then you will need an investor.   There are numerous venture capital firms as sources of capital investment, local business owners, angel groups (small private investors), and importantly your friends and family who are the best sources of investment and eventually who are most willing to help you with some ideas.

There is one interesting thing about investment. We have a lot of investors across the globe and searching for a suitable business to invest their funds. According to some latest survey, they have found 63% of angel investors live outside New York, Silicon Valley, and Boston.

If you are curious about ways to find a potential investor, you will find some effective ways to look for an investor in your sector in this article.

Five effective ways to find investors

Finding Investors

1) Strategic Networking

One of the efficient ways to find an investor is your professional network. You should look for the individual investor or a group through investors with networks where you can quickly join. Your official or alumni network is also a great way to look for a potential investor. Through this network, you will either be able to find a known investor or able to determine a method to find one.  If you are a startup company and are looking for a low level of investments, then it won’t be a bad idea to find the resource locally.

Affiliated venture communities are the next easiest and effective method. Recently several universities have established incubators and accelerators for management students and their alumni. Hence, through these research-based programs, you could get in touch with a college or university with a strong network of entrepreneurs/investors from their alumni, students, faculty, and speakers. They will be able to point you in the right direction of resources.


2) Angel Network

Angel networks are one of the best ways to find an angel investor. These investors could ideally be your support system in establishing your business. In addition to funding, they also work with you and help you with the necessary advice, offer access to the network of contacts, and provide mentorship. In case if you are seeking support from online portals, then you can start your search from sites like Angel Capital Association,, and Angel Investment Network. All of these sites open doors for thousands of angel investors who offer required information on the investment type they are searching.

Through the Angel Capital Association, you can also find a suitable regional investor near you. Many associations have started to stimulate new business/ service opportunities by offering a directory with area and investment type.

3) Crowdfunding Sites

Crowdfunding is another online site where you can have access to several investors with different specialization. There are several sites with its unique focus and method of incentivizing investors. Pererbackers, Kickstarter, Indiegogo are ideal for the general public with a low level of investments. Sited like RocketHub is where you can find generous investors who believe in supporting others to realize their dream. There are also several other networks with many accredited investors with new ideas. Hence you should study carefully, and make proper research on each one that best suits your business goals.

4) Professional Social Networking Sites

Though professional networking sites like linked are a better choice to look for potential investors. However, you can still find various websites that have been helping businesses of different sizes to connect with their investors across all the business segments and industry specialization. If you wish to establish your business globally, then you can also connect with investors from other countries who can expand your product/service to the other part. Try exploring the networking sites like Xing, EFactor, Plaxo, Cofoundr, Startup Nation, and Meetup.

Not all the businesses can get a loan from the banks, because several regulations are involved for the startups. Hence, online lending platforms can be an alternative solution to seek financial support.   With the launch of these non-traditional lending platforms, many startups have been able to achieve their dream. These sites can be a pool of large investors, peer-to-peer platforms, and non-traditional lending sources that help businesses financially. Some trustworthy online lending platforms are Prosper, On-Deck, Trust-Leaf, and Lending Club.

5) Friends and family

Looking for an investor through friends and family is not a bad idea, because you could get a lending hand easily from your close circle. There could be people in your family or friend circle with the same ideology and business motive as you. An additional benefit of having an investor from your circle is that both already have mutual understanding, and they know each other personally so the proceedings and communication can also be accessible.

On the hand, if you know some other entrepreneurs who successfully found their investor, you could seek their help in finding the right resource or direction.

how to find investors

However, there are some risks involved in this. If you are looking for an investor, you have to make sure about specific points:

  1. Clarify aspect of the risk involved in the business to them.
  2. Your personal and professional relationships must be drawn apart before carrying out any business deal.


Who should reconsider funding options or investors?

Though opting for an investor is beneficial in several ways, this may not suit every business.  Funding comes with its terms and conditions. Some of the conditions like:

  1. Not ready to share any percentage of ownership
  2. Companies that are in the budding stage and not sure about the advice received from an outside source
  3. Entrepreneurs that do not have a clear understanding of the company’s future in the next five years
  4. Companies that have a specific use case for funding

funding options


You could find a wide range of business investors around you, but you have to be more clear on who will best suit your business startup. Few of the investors expect you to give some of the shares of your company or revenue to them. Different type of investors may be interested in equity contracts where you have to provide them a part of your earning when you sell the company. In the case of a few other investors, they also expect you to offer them a seat on the board.

You should be on a stage to analyze entirely on all the pros and cons carefully, and then drive to a conclusion on which type of investors will best suit your business. It is comparatively more important to receive a proper and enough funding resource to reach your goals. Also, a vision of your personal and commercial goals must be enlisted before implementing any funding strategy from your investors.


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