How to Get Investors for a Startup

So you finally have the idea for the startup that will change the world. All you need is a little more seed money and you’ll be able to make it a reality! So how do you get investors for a startup? The good news is there are more ways now than ever before. Here are our top tips to help you get the investors you need:

1. Have an idea that’s worth funding. This should go without saying, but all too often it’s overlooked. Your startup shouldn’t just be a clever idea; it should be a clever idea that adds clear value to a specific audience’s life. Also, make sure that your idea is not a carbon copy of an existing product or service. If it’s similar, it should have a clear twist that makes it sound better (it’s like ET meets Star Wars!).
2. Make sure you’re ready for funding. Every startup needs funding, but not every startup is ready for funding. Being ready means knowing how a business operates, and more importantly it means knowing exactly how your own product or service is going to fit that model. It’s more than just a business plan, it’s a clear sense of the marketing and the potential customers—before you make your first ask.
3. Do your homework. Investors get a lot of requests, and you should do your research on each prospective investor before you ask. For instance, never ask an investor who has funded your direct competitor. Investors who have funded projects similar to yours are a great find, as long as those other projects aren’t your competition.
4. Try to get a personal introduction. Just like anything else in business, investment opportunities become a lot more likely when there’s some kind of pre-existing connection between you. See if a friend or anyone in your professional network may have worked with this person before, and ask for an introduction.
5. If making cold contact, have a reason why. You can’t always have a personal connection to a potential investor, but if you don’t you’ll have to work twice as hard to show them why they should listen to your pitch. Your first contact with them should indicate a clear, personalized reason why you chose them (“I see you were a strong supporter of this other project, which is why I think you’ll love our project…”).
6. Use a startup/investor matchmaking website. Every single one of the steps above will be easier if you have access to the thousands of investor profiles these websites offer. Getting a membership on a startup website lets you show off your project, lets you peruse investors who have already signaled they’re ready to listen, and helps you do your homework before making first contact.
   
   
   What other startup investing tips do you have?