Make your idea into reality with the perfect VC or Angel
The relationship with an investor and founder is like any other relationships we have. It takes time to find the right angel or VC and patience to nurture it and maintain it. After all, they are ones who can make your idea into reality, and get it off the ground.
This person isn’t just lending you money. Their years of experience, expertise, connections etc. is going to help your business a long way. This person is going to be as involved as you in the working of the company.
As daunting as the task may be, finding the right investor will get the ball moving. In this article, we’ll help you find the investor befitting you.
First, a few things you should do before you begin your search for the right investor:
- Be prepared and know your product thoroughly
Why is your product important? How will it make a difference to our lives? How is it different from other products?
Meeting and convincing an investor is a hard task. Their constant questions may end up disheartening you. But prepare for questions not just pertaining to your product, but also why you have chosen this sector, what is your PoA, why is it needed etc.
- Spend time to perfect your deck
Your pitch deck is the first impression the investor is going to have of your company. It is important to get the right balance between too little and too much information.
Try to avoid sending a standard deck. Research your investors before sending out the deck.
- Know the type of investment you require
There are different types of investments, mainly Private Equity, Angel investing and Venture capital.
But many people don’t count Government funds as one. Consider government funds as a way to source investment.
Next important step is gauge whether you need seed investors or angel investors. Do you need small amounts of fund just to start out or do you require huge amounts of funds?
While deciding on an investor, keep a few filters in mind such as their area of expertise, successful investments, their working and reputation etc.
Pro tip: You should also remember to ask questions which will help you decide if the partnership will work or not. Questions such as their expectations from Founders and CEOs, how involved they liked to be in the working of the company etc.
Here are a few areas to start your investor search:
- Social networks
Social media such as LinkedIn can be a good start to find investors. Curate a list of investors who may be interested in your product and message them.
With the information provided, write a mail and try to create a personal connection.
Other sites like Quora and AngelList can help you in locating investors.
- Events or Conferences
Startup events and conferences can be an extremely effective way to meet investors and pitch your idea to them. Not only can you meet a large number of people in a single go, you can also get advice and mentorship.
Network and increase your contacts during such events. Leaders at such events can suggest investors or companies.
- Personal Contacts
Recommendations always increases the chance of meeting an investor. Go through your contacts, advisors or mentors and ask them to get you in touch with VCs or Angels. A mentor will also be able to suggest the right VC who is looking to invest in your type of product.
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