Category Startups
find investors for startup Planning to launch your company? Look at this comprehensive guide first to learn How to Find Investors for Startups!

A remarkable business idea is just the beginning; however, executing it without funds is nearly impossible. Even the best startup ideas require financial support to get started. While 77% of startups rely on savings for the initial funding, they eventually need more investors to continue.

That’s where it becomes challenging for startup and small business owners. The question arises: How to find investors for small businesses?

Read on to learn how to find investors for startups, along with tips to secure an investment.

Types of Investment Options Startup Owners Can Explore

find business investors

Considering how to find investors for a startup? Here are the best ways of securing funds for your business:


Crowdfunding platforms help you set up your business using small investments from many people. It also gives you access to a big community of possible clients. These people get easy entry points, as they can invest as low as $10 or $20. 

However, most crowdfunding platforms only allow you to receive the money when you raise the total goal amount. Additionally, it may require you to offer a product or benefit in exchange for the funds. Fulfilling so many orders can be challenging, mainly when you have just launched your startup.

Small Business Grants

The government offers several special grants for small business owners. 

Apart from financial support, these grants often provide you with facilities or equipment you cannot afford otherwise. You also get advisors who can guide you in your startup decisions. Unlike business loans, the best part is that you do not need to repay the grants.

Every grant or finance program has different application processes and eligibility criteria. You must research everything before applying.

Startup Accelerators and Incubators

Startup accelerators and incubators are organizations that offer resources, advice, and mentorship to facilitate a startup's growth. While most incubators and accelerators have many features in common, they are different from each other.

Startup accelerators offer intensive programs for quickly launching a product or service. Through an accelerator program, you may get access to office space or a manufacturing facility in return for equity in the company. 

On the other hand, incubators focus on the long-term aspects of a startup. They help you refine and enhance the products or services you offer.

In both cases, you may need to attend a demo day where you pitch your business idea to a group of investors.

Friends and Family

Ask your friends or family to invest in a small fundraising round from your network. This kind of investment is usually taken to get the business started.

It is easier than seeking funds from professional investors as you are asking people you already know. Moreover, in most cases, you don’t need to share equity or offer a stake in the company.

Angel Investors

Typically, angel investors are individuals who invest their own funds into emerging businesses. They are not necessarily a part of any company or funding organization. 

These angel investors are often ready to take bigger risks for businesses they believe in. If you earn their trust, you may receive substantial capital to grow your business.

However, you may have to share some control of your business and offer them the position of an adviser or board member. The angel investors may also ask for equity shares in your industry.

Venture Capital

These firms are a type of private equity that invests in several stages of a startup to help with the further growth. These firms have a lot of investor money and can offer considerable funding for small businesses.

A venture capital firm usually invests in startups with immense growth potential. It assures them of generating high returns on their investment.

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How to Find Investors for a Startup?

find investors for business

When initiating a startup, founders often have this one question in mind, ‘How to find investors for my business?’

You now know the type of investments you can opt for, but how can you reach these investors? Finding investors for a startup can be challenging, especially when you do not know the proper channels to proceed. So, here are some tried and verified ways to find business investors for your venture:

Begin with Your Inner Circle

When confused about where to find investors, start with your private circle. This is the best way to find investors for startups during the early stage since you have known these people for years. You have established a relationship of trust, which you can now utilize. 

Moreover, who can you rely on if not your family and friends? Additionally, your inner circle will know your credibility and potential, so they're more likely to agree to your terms.

However, it is necessary to maintain professional decorum, even though you have a personal relationship with these people. 

It doesn't matter if your investor is a family member; create a legal investment contract. It is necessary to maintain the boundaries of professional and personal relations.

Utilize Industry Contacts

Many investors offer to fund and invest in specific industries. If you have connections in your market, ask them for recommendations. Your friends may know investors who specialize in investing in your niches. Even if they don’t know, they may spread the word through their contacts. 

Don’t lose hope if you don’t find investors for your business in the first place. Opportunities may sprout up later; you just need to put forth your needs. 

Approach Established Entrepreneurs

Established business owners may offer crucial information on how to find investors for startups. These people have had the same experience during the initial stages of tier businesses. So they can share some tips or connect you with some investors. 

Network through local business organizations, attend trade shows, or join local business groups. However, do not go overboard with your pitches. The goal is to bond with your fellow entrepreneurs and learn from their experiences. Establishing a relationship will come in handy when you need funding.

Reach out to Venture Capital Firms

If your startup is in the later growth stages, venture capital funding can be a good option when considering how to find business investors. Here’s how to find the right venture capital firm:

  • Connect with firms that have offered funds to complementary businesses.
  • Reach out to venture capitalists specializing in your niche through LinkedIn
  • Attend local or virtual pitch events to connect with private equity firms. Even if you don’t pitch the first time, attending the event will help you learn a lot. So you can be ready when you need to raise VC funding.  

Consider Different Crowdfunding Options

If you are seeking crowdfunding to find investors for a small business, explore the various types before initiating efforts:

  • Rewards-based crowdfunding to get funds in exchange for a reward.
  • Donation-based crowdfunding is helpful if you are not currently eligible to offer your products on a large scale. This is because, using this method, the money raised is not expected back.
  • Explore peer-to-peer lending to eliminate intermediaries and acquire funding directly from investors.
  • If you are willing to offer investors some ownership in your company, equity crowdfunding can be your option.

Opting for crowdfunding also helps with startup branding, which eventually creates opportunities for acquiring investments. Several crowdfunding platforms exist in the market to help you become visible to potential investors.

Leverage Online Channels

Another effective way for startups to find investors is to utilize online platforms. Build a strong digital presence across all social channels to gather a significant following, which will help you attract the attention of potential investors.

List your company on reputable websites and community groups and engage with other businesses. Responding to their posts with valuable and encouraging comments can help you network in your industry. 

Gradually, you can use your mutual connections to get an introduction to potential investors. You can also reach out to them directly and start building a relationship.

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How to Land an Investment Deal: Essential Tips

find investors for my business

Landing an investment is challenging. While pitching to investors may sound difficult, it's only a part of the process. Before you reach that stage, there are many things to take care of to increase your chances of receiving funding.

So, before you start to find business investors, here are some considerations you must make:

Prepare Your Business Plan

A strong business plan reflects your sincerity and commitment toward your startup. It shows that your plan goes beyond that big business idea.

Creating a business plan will also help you better understand the market. When you present your pitch, the investor will know that you have thought about it thoroughly. 

Prove Your Vision

You have a business plan ready, but you must also be ready to prove that your idea will work. If you have a great product idea, build a prototype. Keep building until it works perfectly.

Proving your concept will make your startup more ready for investment consideration.

Consider Getting a Co-Founder

Find someone who fills in the gaps in your current setup and complements your weaknesses with their strengths. For instance, if you are weak with numbers, get a co-founder who can handle the finances better.

Moreover, a cofounder may also get some funding, personally or through their network.

Create an Advisory Council

If you do not want to partner with someone, get experienced professionals on your startup’s advisory committee. They can guide you on the fundraising process and other aspects of business.

Additionally, their presence will let investors understand that you are investment-ready.

Always Be Prepared

You may not know when an opportunity will strike, so it’s better always to be ready with your proposal.

  • Have a solid value proposition to grab investors' attention. It should show how your product or service can benefit customers and highlight how you are better than your competitors.
  • Be transparent with your financial data. It involves various statements like income statements or balance sheets. However, as a startup, you may have to share information about income, fixed costs, gross profit, expected EBIDTA, etc. So, always keep these numbers handy.
  • Keep practicing a 30-second pitch. Remember to keep your pitch concise and clear. It will allow investors to quickly establish the value proposition and decide whether to explore it further. It should also be intriguing enough to encourage investors to ask follow-up questions.


Build confidence to answer tough questions. Answering complex questions confidently will showcase your expertise and potential to the investors. Read and research before pitching to investors to have the required confidence to impress them.

Wrapping Up

There are many ways to find investors for startups. You can either take bank loans and grants or explore crowdfunding and VC funding options. If you have the resources, you can also bootstrap your venture.

So, if one option doesn’t work, do not hesitate to try another. Prepare for another opportunity and always be ready with your proposal. You can also read about the top 100 startups to get some motivation.

Meanwhile, keep expanding your network. Use every offline and online source to connect with investors, attend trade events, and build a solid online presence.

Frequently Asked Questions

  • How to find investors for businesses?

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    Business owners can explore several investment options, including:

    • Venture capital funding
    • Angel investors
    • Crowdfunding
    • Bootstrapping
    • Asking friends and family
    • Crowdfunding
    • Small business loans
    • Small business grants
    • Accelerators and incubators

  • Where to find investors for startups?

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  • How to find investors for an idea?

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Sakshi Kaushik

By Sakshi Kaushik LinkedIn Icon

A passionate writer and tech lover, she strives to share her expertise with mobile app developers and fellow tech enthusiasts. During her moments away from the keyboard, she relishes delving into thriller narratives, immersing herself in diverse realms.

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