How to Find Investors for your Small Business| Top 6 Ways

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I strongly believe that more than 90% of the start-ups fail and only 10% of them can succeed. There are several reasons for the same.  A fantastic business idea with a huge market potential may not become There are multiple ways in which you can find investors for the business. No matter how useful your product is for the customers how potential your business plan is, grabbing the attention of investors for business is a critical task for an entrepreneur. Even those companies with successful track records often face challenges in raising funds for expansion of the business. In this article, we can understand how to find investors in India how a start-up in Indian can raise funds from investors. It is tough to consider, but finding investors is not the tough part of getting funds -, throughout the process of attempting to raise funds, an entrepreneur might have opportunities to speak to upwards of 30 – 50 investors, considering their idea and position.

How to find Investors in India, how to find Investors for Start-up, how to find Investors for Business, how to find Investors for Start-up In India
How to Find Investors in India

However, the viability of your business idea, long-term potentiality, and relevance of your business idea to the contemporary world helps you raise funds for your business. Any impractical business idea is just a waste of your time and investor’s time brings no relevance to the discussion table. Let us understand some of the best methods to attract investors for the business. Remember! These are not the magic tools but makes a huge difference to your approach in grabbing the attention of investors towards your business.

How to Find Investors in India, how to Find Investors for Start-up, how to Find Investors for Business, how to Find Investors for Start-up In India
How to Find Investors for Start-up

 

  1. Start with Family and Friends

Family and friends are the primary options to trace investments for centuries. Family and friends’ networks are the most trustworthy sources for investment since many times they know whom they are funding and the business for which they are funding. The trust factor plays a key role in sourcing funds through this channel. However, potential entrepreneurs should not live in Lala land while pursuing his or her business idea.

How to Find Investors in India, how to Find Investors for Start-up, how to Find Investors for Business, how to Find Investors for Start-up In India
how to Find Investors for Start-up

They need to be practical and reasonable in terms of investment size and potential business volume.  Any superficial assumption of a potential entrepreneur may not only spoil the precious financial resources but also the precious relationships in family and friend’s network. The entrepreneur will have double responsibilities when it comes to sourcing funds from family and friends.

  1. Explore Angel Investors

Angel Investor- the name looks nice and eye-catching. Isn’t it? True. The name reflects a lot on what functions they perform. Angel investor associations are member-based networks that manage to service by locale. They are frequently operating from a fund that has been set aside by an investment company to source contracts for the network. Applications are pre-screened, the angels can retain their privacy, and founders can find themselves receiving offers from up to a hundred investors for one venture.

How to Find Investors in India, how to Find Investors for Start-up, how to Find Investors for Business, how to Find Investors for Start-up In India
How to Find Investors for Business

They deploy a significant portion of investments in your business. However, they are not very demanding like venture capitalists who take control of the business when they invest money. They will not take control of the decision-making powers of promoters. They deploy funds and take backseat without disclosing their identity. That is why they are called Angel Investors. They are more flexible in setting the terms and conditions for investments. So, I believe going to angel investors is more convenient than going for Venture Capitalists for funds. How do venture capitalists function?

 

  1. Venture Capital

Venture Capitalists fund those business projects with high potential for success and long-term sustainability. A venture capitalist is often a hard route since the screening process is too tough and only a few business projects win Venture Capital. Venture capitalists fund the business and often take control over many aspects of the business.

How to Find Investors in India, how to Find Investors for Start-up, how to Find Investors for Business, how to Find Investors for Start-up In India
How to Find Investors for Start-up In India

Sometimes, the original promoters lose control over the business and struggle to take decisions since many a thing is indirectly controlled by venture capitalists. Venture Capital fund comes with high return expectations since the level of risk in investments will be comparatively higher.

  1. Connect with your Industry Friends

If you have connections with your industry friend running the identical business to you, check with them for investment recommendations.

How to Find Investors in India, how to Find Investors for Start-up, how to Find Investors for Business, how to Find Investors for Start-up In India
How to Find Investors in India

Your industry friends work as a shortcut to reach your potential investors since they may have information about the investors who are looking for investments in the industry.

  1. Crowdfunding

As the name indicates, the crowdfunding for budding entrepreneurs brings opportunity for virtually all business opportunities.  You can pitch your business idea to some of the websites like GoFundMe, Kickstarter, and Indiegogo.

How to Find Investors in India, how to Find Investors for Start-up, how to Find Investors for Business, how to Find Investors for Start-up In India
How to Find Investors for Start-up In India

They listen to your business idea and fund you in case the business opportunity is viable. It is important to understand that they do not expect equity interest in your company.

  1. Social Media

An active presence on social media is considered to be the most cost-effective method to raise funds. Social Media Platforms often bring you a lot of business opportunities and investors too. You can promote your business on social media to build trust and confidence which ultimately may result in investments.

How to Find Investors in India, how to Find Investors for Start-up, how to Find Investors for Business, how to Find Investors for Start-up In India
How to Find Investors for Start-up In India

When we talk about social media platforms, I would like to name a few and methods to use them for tracing investors and grabbing their attention.

A. LinkedIn

You can use LinkedIn to promote your business ideas while actively participating in the deliberations on various business aspects. When you have quality posts and comments on your LinkedIn, page, the investors may find you reasonable in your business too. Many times, venture capitalists screen the discussions that take place on LinkedIn Network.

B.Facebook

Facebook discussions and postings often grab the attention of your investors. When the posts and discussions are relevant to the contemporary world, investors may show interest in your business.

C. Twitter

Thoughtful discussions on twitter may catch the attention of your potential investors. When you post quality thoughts and analysis, the investors may show interest in joining with you in your business endeavours.

That’s all in this article. Hope you enjoyed reading it. Please feel free to share your thoughts in the comment section.

 

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About Pavan kumar C

Pavankumar Chandrappa is an excellent academic writer, learning designer, research scholar, and blogger in the management domain. He has more than a decade of blended experience in academia and industry with great exposure to writing on various paradigms of business management. He has published a series of research papers on various paradigms of learning. You can access his detailed biography by typing"Pavankumar Chandrappa" on google search.

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