Finding an investor for your business can be crucial to the success of your venture. Besides the fact that sufficient capital is essential for growth, an investor can also provide knowledge, connections and experience.
But how do you find a lender who has confidence in your vision? In this article, we highlight how to find the right investor for your business.
[1] Determine the financing need
Before you start your search for a suitable investor, it is useful to establish what you are looking for. Make a clear plan, in which you include how much investment you need, what the expected sales growth is and what impact this will have on cash flow. This helps to convince potential investors of the potential of your venture.
[2] Research potential investors
Not all investors are the same, nor are they all looking for your business. Are you curious as to which type of lender you should set your sights on? Delve into venture capitalists, angel investors, crowdfunding and strategic investors. Compile a list, looking at which parties in your sector and company size might be interested. Also, dive right into the investment history and their criteria so there are no surprises.
[3] Build a network
From behind your computer you are not going to meet the right party. It's time to attend events and conferences or a trade show relevant to your industry. Expand your network and start with a warmth introduction, if you have the chance. Also, don't be too afraid to ask other entrepreneurs for advice. After all, you don't have to keep reinventing the wheel.
[4] Be transparent and convincing
Of course, a strong pitch is extremely useful, because it convinces potential investors of your qualities. Of course, the first thing investors want to know is what kind of company they are dealing with before they delve deeper into the figures. Being convincing is essential, but make sure that you are always honest and transparent. What are the current challenges and trends in the market and how do you see your company's position in all of this? Being a reliable and responsible entrepreneur will always be number one for investors.
We won't let you swim, of course, so that's why we've also gathered some good resources for you. Below is a list of networks or platforms where you can find a suitable investor.
Find a business angel
Netherlands
A business angel is an informal investor who provides financial support to start-ups or young companies. He or she often has plenty of experience in entrepreneurship themselves, giving you a suitable party to support you. In the Netherlands you can start your search at Business Angels Netwerken Nederland, where there is a database online so you can already look for investors who catch your eye.
Europe
If you are on your way to international growth or looking for an international investor, you can also take a look at TechLeap. Also, the European Business Angels Network is a reliable platform, as is Business Angels Europe.
Famous investors
From time to time, you may see Hollywood stars or well-known entrepreneurs passing by looking for groundbreaking projects. Think Leonardo DiCaprio who invested in Mosa Meat or Bill Gates who put millions into Picnic. You can also put Jeff Bezos, Marissa Mayer and Matt Mullenweg in this list.
Successfully attracting an investor requires good preparation, an extensive network and a convincing pitch. Map out your financing needs and do your research on investors, so you won't have any surprises. Good luck!
