It is evident that finding the investors in a startup is time consuming than what we could even imagine. And of course it is all normal as we would like to carefully examine all possibilities as the consequences of our company will be high. Investor research today isn’t too complex—it often just means checking a few databases and sites, especially when preparing How to Pitch Your Startup to Angel Investors.
It is not easy to find investors in a startup as it is with a plumber. Never is there the existence of a so called directory of interested investors that you bombard with email and wait to see people lined up to stuff money into your pocket. The thing is the same as finding clients, where prospects are pursued followed by efforts to have a warm introduction with the prospect to initiate discussion.
Connecting with angel investors
It is a very exciting moment in starting of a small business but it must be noted that the initial capital would not necessarily be self provided by the businessman himself or a bank loan. What about some of the sources we can locate these investors to start a business despite earlier question I do not have any investors, why should I care about my social network?” read the following You are likely not to know anybody.
Who is an investor, and this is not the issue. You may have a relative or friend who has acquaintance with an investor and this is whereby most of such startups get to invest in their startup. This may not be his uncle but can be one of your classmate in college or your former place of employment. Because of the urgency and importance of this healing, search into your own personal network is simply the most significant research you will ever perform, and are about to perform.
What is an angel investor?
It is particularly worth it especially in the discovery of 2nd and 3rd degree relationships of who you know. We have the option of scouring other social networks such as Facebook or other websites, however LinkedIn has been the best blanket use of professional information about others. In case you have not yet developed a well-rounded LinkedIn profile, then it is the right time to do so. Incubators refer to organizations that aid startups to convert.
Their ideas into products. They lend a very little capital (usually between 20,000 dollars) and in exchange share a minor amount in the equity of the company. However it is not only the money, they offer you a team of best talent and mentors which will hold your startup on track by putting people and other resources in your way with whom to do things as fast as possible. It can help as a nice first partner in case of entrepreneurs with no previous experience. The incubators initially emerged in the technical field, although these days there are more than 3,000 throughout.
What are the benefits of working with an angel investor?
The world and across many different types of businesses. Just like in the university application strategy, all the incubators will have limited space available on a regular basis and will need to replace old firms with new ones. The first option you will have is to begin with incubators that are geographically located near you since they are the most obvious to pursue. In addition to this, it also matters that incubators either specialize or have experience in startups relating to your industry.
When you are opening a new restaurant in Wichita, there will be no sense to apply to the technological incubator in Silicon Valley. Do not consider incubators as a check of 20 000 dollars. Consider them as the capacity to be able to add on an existing behemoth network of links overnight. Included among them are startup investors who consider incubators as breeding ground of new investments. An incubator can at times serve as a point of entry to an even larger pool of investors interested in them. There exist an investor databases which possesses a buried pot of gold in which investor.
Conclusion
Information is pertinent such like the past investments that have been accumulated, the people who brought about the investments and the amount invested. The good news is that. The unfortunate thing is that there is no magic database of hungry investors into which startups can spam their idea. Suppose there were such a list all the investors on earth would beg to be excluded in it. There are a number of companies, 90 per cent of what you are going to do, you can probably do with Crunchbase, which is free. There are some more expensive services (the list of which you can see below).
But you will most likely need to have a very specific use case in order to take the trouble to use it. Crunchbase is the best source of information to an investor (mostly free of charge). You will see more than 100,000 investor profiles and their investment profile here. You can find angel investors, venture capitalists and all other sort of special investors depending on your requirements. Crunchbase has so much background knowledge such as their investments, all the contact details, one can get through social media. This will certainly be your best asset of massive research.
