How to Find Investors for Your Startup?

Starting a business in today’s economy can be a big step for anyone. It requires not only a great idea but also a lot of determination and will power to make a difference in the world around you. This can be a step which can change your entire life if you choose to take it. This is because this can be the step you take to make a difference in the way you make a living. You can use it to finally quit the rat race and the 9 to 5 job routine, instead it can help you to work on your own terms. This in short means that you will be able to be your own boss.

When you do decide to make a difference and start your business, there can be many people who may disagree with you and try to stop you. This can be a very discouraging thing. But you need to realize that people say things like this because of their own fears. If they are someone who cares about you, they are someone who is afraid of seeing you fail. That is why they want you to take the route of least difficulty and risk.

On the other hand, if they are someone who is not your well-wisher, they can be saying this because they are afraid of seeing you successful. In both cases, if people cannot do something on their own, they will try to make you believe that you too cannot do it. These talks of nay-sayers are there for you to ignore and only ignore. This is because if you work hard, there is absolutely nothing that you cannot accomplish. This is the mindset you will require when you try to start your new business.

How to Find Investors for Your Business

Your startup can actually be the difference to the world and it may be exactly what the world currently needs. This can be because it can be the major solution to a lot of the world’s current problems. This can help you by making you rich and bringing you a ton of fortune and fame.

This can be seen in a variety of examples when you look at the world. Many people like Elon Musk have been able to become rich and famous by solving a problem that the world already had. This not only lead them to fortune and fame, but also to a lifetime of being remembered as heroes who changed the world for the better and also did all they could to save the world from its existing problems. You can do the same and aspire for greatness with your startup. This can become the one thing you need to change your life for the better and make it a lot more awesome than before.

However, every startup does require a few basic things before starting out to change the world. This includes a world-changing idea. This idea not only has to be original, but also something that can solve one of the major problems you see around yourself. These problems have to be major, but don’t have to be world impacting like cancer. You can start with something basic like reducing commute times or making it easier to eat healthy and organic food. Looking at these problems at a deeper level can help you find an effective solution for them which can and will be used for making the world a lot better.

The next thing you need is a plan to properly execute the idea. This plan should be time bound, and you can even use smart goal setting for this concept. SMART goal setting is a basic abbreviation that tells that all your goals should be Specific Measurable Achievable Relevant and Time-bound. This will help you develop a sturdy plan which can be followed by you till the end and can thereby help you achieve your goal of owning a world-class startup.

The final thing your startup would need is capital. You will need money to hire people, purchase supplies and resources, manage your accounting, etc. This is exactly what will be required to start up your investments to make a big difference. If you were born rich or have got a ton of money, you can invest that without any difficulty.

If you were not, then it is the right time to look for alternatives. Most people would start by looking into loans from banks. Unfortunately, without an excellent credit score, you cannot get a loan from a bank for your startup. This leaves you with the option to find business investors.

Starting a business with capital requires you to have a lot of money. A lot of this money will come from investors. Lucky for you, there are amazing investors all over the world who would be willing to give your startup a shot. They can do this by using their personal capitals and putting it into businesses that they see as potential profit makers. If you live in the US, you are even luckier since almost two-thirds of all angel investors are either in NYC or in the Silicon Valley. If you are finally done with bootstrapping your income to make ends meet at your business, it is time to find an investor for your business.

Possible Investors

Before you start looking for the right investor for your business, it is important to know who these investors are. They will most certainly count your startup as a small business and hence will need you to look for small business investors. These investors are a bit different from regular investors since they specialize in funding a company through its early stages. This makes them completely helpful for the business capitals and helps them to provide a business with a ton of capital for an initial boost.

When you are trying to look for investors, you will discover that a majority of them specialize in investing in a certain kind of investment. They can be specialized in investing in small businesses or large-scale factories. You need to be looking for the small business investors to be able to get the right capital for your startup. You will need to start by looking for investors with a certain business model that aligns with your idea. This does not have to be at a root level, but at the surface or mid-level only.

This is because these investors are not running a charity, but rather expect much greater returns on their investment. This will help them to make profits based on their investment in your business since investing is their business. Many of these investors had startups of their own that required investments and hence they understand that which businesses will give them good returns and which one’s wont. This helps them to reach conclusions about whether investing in your business is a good idea or not.

Angel Funds Vs. Seed Funds

When you need to look for investors, you may be looking for either a single investor who invests solely in small businesses. If not that, then you may be on the lookout for full seed investors who can help raise a certain amount. This will help you to decide which system is better for you. This is very important to know since the right system of investors is exactly what will help you to make a living in the business world.

In order to enhance their own growth, investors will advise businesses to take funds from only a couple of investors. This allows a business to get a deep relationship with its investors in order to get a sizable amount off the equity. This will also help since Angel investors mostly do not agree to or choose to have board seats. Instead they just prefer to invest in your business and get their share of ownership. Seed investments take more time that angel investments since they require conversing with and convincing multiple people about your business idea.

Most businesses do end up raising seed rounds as well as angel investments. This helps them get a wider range in their investments. This however, is not advised as these people are those who already have experience in running multiple businesses. If you were one of them, you wouldn’t be reading an article to find investors since you would already know how to do it.

Accredited Investors vs. Non-Accredited Investors

The US SEC has given an official definition for each accredited as well as non-accredited investors. It is important for you to know the difference between the two in order to make the right business decisions for your startup.

In simple terms, in order for an investor to become accredited, they will need to have made at least $200,000 in the previous two years individually, or $300,000 while in a joint venture or partnership with someone. They must also be on the path for a similar growth in their income. Some business seeking investors can skip the income requirement if they have a net worth of more than a million dollars. This also comes with some other rules for which you can contact your lawyer. According to the SEC, investors need to be accredited in order to make sure that the general public is safe of big risks.

To summarize, this means that all your investors will need to be accredited. This is of course unless you choose for a seed investment.

Equities Vs. SAFE Note Vs. Convertible Note

While searching for how to find investors, you have probably come across the fact about having to give up equity. Apart from this, you should know that a convertible note option is also available to you, however, this is a bit more subtle.

A convertible note is a lot like a short-term loan which is often utilized in the financing of the early stage of a business. This means that you will receive funding in the case of a convertible note, but in this case, you will not have to pay back interest and principle. Instead, your investor will get equity for all the outstanding debt you have. This setup is preferable for most businesses since they cannot work without cash, but also cannot put a number on the value of their startup.

Another option you may come across is the SAFE note. This is a great arrangement that can help both the business owner as well as the investor to minimize their losses. This is an abbreviation for Simple Agreement for Future Evaluation. This works similar to a convertible note, but does not result in debt. It is shorter and get converted into equity after an evaluation of the company done late into the future.


A lot of investors choose to invest on their own and by using their own bank balance. Others on the other hand do it in groups. This helps them to minimize both their risk as well as their investment principle since when doing it alone can result in a ton of losses. A ton of angel investing agencies do try to sell individual investments as the best kind of investment there is. And while that is true for some cases, for other, a syndicate can bring a lot of more profits and peace of mind to the business owner.

Should You Look for Investors?

Many businesses straight up go and start looking for investors for my business. And before you try the same, it is important for you to know whether you should go and look for investors or not. When people invest in businesses, they do so while expecting a big return on their investment. Is your business something that could make those returns or not? Some businesses are better off with other funding methods such as crowdfunding or getting your family members or relatives on board with your business. Getting them to invest will certainly minimize the risk for you as well as for them. They will also be doing this out of the goodwill of their heart and with a lot of less legal complications. Good Luck.


Our content is delivered by a team of authors and contributors from multidisciplinary backgrounds, experiences, and various expertise. Together we deliver content which adds value to your life and we serve our readers only with authentic content.

Published by

Recent Posts

How To Keep Your Computer Safe and Secure

Like car maintenance and insurance, computer security is often one of those things that we…

3 days ago

6 Profitable Ideas to Expand Your Cleaning Business Today

The commercial and residential cleaning sector is profitable for small enterprises because of the low…

3 days ago

Investor’s Guide to Technology Trends that will Define the Next Decade

No one can predict the future of technology trends with 100% accuracy, but we can…

5 days ago

4 Education Plans that can make your child’s life Easy!

The child education plan is one such plan that focuses mainly on your kid and…

6 days ago

How you can Boost Collaboration with the Right Technology

Collaboration is nothing new in the business. Any business that’s ever been successful has been…

1 week ago

How Can I get knowledge and Practice in the GST

The Goods and Services Tax (GST) is a value-added tax levied on the amount of…

1 week ago