11 Realistic Tips To Attract Investors For Your Startup Business

It can be difficult for a startup to find investors. 

You need a clear and concise plan showing how you’ll make money and how much you’ll make. 

Investors are looking for businesses with high earning potential. They want to see a business that’s scalable and has the ability to grow quickly.

In other words.

You need to get investors interested in your startup. You need to grab their attention and convince them to invest their money in your business. 

We know what you’re thinking. 

That’s hard to do. 

That’s why we wrote this blog post to help you get investors excited about your startup. 

This blog post contains 11 realistic tips to attract investors to your business. We cover simple and advanced tips. Some can be implemented in a day, while others take time to implement. 

Are you ready to learn? 

Then let’s fund your startup.

Find investors

Show Evidence And Hard Numbers

Serious investors don’t rely on their intuition. Instead, they want to see real-world evidence that the company they are looking to invest in can help them earn money. 

The problem is that showing evidence can be hard in the beginning. Maybe you’re just starting out and have nothing to show. But, you can overcome that problem. 

Here’s how. 

Think about ways you can show some hard numbers. Can you maybe do a pilot project? Or a small-scale launch to see how people perceive your startup?

It’s that simple. 

You can also share success stories of similar projects that you want to compete with. Don’t forget to share what makes your startup better. 

New Startup?
You need an amazing name to get noticed. Try our startup name generator to create unique name ideas for your new business. The generator is free to use. 

Create A Personalized Pitch

You’re the salesperson of your startup. Your goal is to sell your idea and get investors that want to put their own money into your company. Because of that, you have to act as a salesperson. 

Good salespeople know how important personalization is. You can research potential investors before you create a special pitch just for them. 

This is how to do it. 

Try to find their investment portfolio. Explain how your startup works with other companies they have invested in. 

You can also appeal to their personal interests. You can find a lot of information about high-ticket investors online. 

Let me explain. 

For example – are they environmentally conscious? Try to highlight the sustainable nature of your business. 

Do you see how powerful this technique is? 

Did You Know?
Stats show that 9 out of 10 startups fail. In fact, 20% of startups fail in their first year. This goes to show how volatile the startup industry is. 

Build A Cohesive Brand

Let’s assume you’ve done your pitch. You personalized your message, and you showed some cold hard numbers. 

Now what?

You can be sure that investors will check your brand before they give you money. They will search the internet and ask around to get all the information they need. 

Think about what they want to see. 

They want to see that you understand how important building a brand is. They want to make sure you have your social media accounts and your website in order. 

They want to see that you’re using the same fonts, logos, and colors. They want to see that you’re telling the same story across different channels. 

In other words. 

They want to see that you’ve put in the work and made sure that all the details of your online presence work together. 

cohesive brand

Stick to Essential Information

Investors are busy people. They often have shares in multiple companies, and they constantly get pitched new business ideas. 

You can imagine they don’t always have the time to go into too much detail about every potential investment. 

So, what should you do? 

You should make sure you only include the most important information in your pitch. You don’t want to bore investors with everything that goes into your business. 

In other words.

Let them know what you do, who you do it for, how you make money, and what’s in it for them. Leave everything else for later.

If they want to know more, they will ask you. 

Did You Know?
The fastest-growing startup industry is Agtech and New Food. Over the last year, financing for Agtech and New Food businesses increased by 128%, the most of any industry. Surprisingly, Agtech and New Food businesses account for only 2% of worldwide startups.

Have A Clear Roadmap

We already covered the importance of evidence and hard numbers. Having a clear roadmap goes hand in hand with evidence. 

Think about what investors want to see. 

They need to see how you plan on scaling your operations. They aren’t interested in funding small startups that want to remain small. 

Instead, they want to invest in businesses that are ready to grow and 10x their investment. 

Here’s how you can convince them. 

Show them you have a long-term plan. Talk about the metrics you will monitor and the numbers you want to hit in the coming months and years. 

You can also cover your exit strategy. This shows you have the end goal in mind. 

startup roadmap

Give Them More Than Profits

Money and profits are the most important things for potential investors. They want to earn money with their investments. 

But, there’s more. 

You can sweeten the deal by offering more than just profits. If you appeal to investors that are passionate about something specific, they might decide to invest in your company, even if they can get better returns somewhere else. 

Think about it. 

Can you offer something other businesses can’t? 

Here are some ideas.

  • Offer them an active role in the business (if they want it)
  • Show you’re fighting for a greater good
  • Show how investing in your business can improve the quality of their lives (besides having more money)

But first, make sure you have a profitable business idea before you start thinking about anything else. 

Did You Know?
It’s never too late to build a successful startup. According to a 2018 study, a 60-year-old is three times more likely than a 30-year-old to launch a successful startup.

Address Common Objections

It’s normal to have doubts when making important business decisions. Investors are highly trained to see the potential in every business idea. But they are also trained in seeing potential problems. 

In fact, there’s a good chance a skilled investor might recognize weaknesses in your business without you even realizing they are there. 

So, what should you do?

Try to find all common objections associated with your business and address them in the pitch and on your website. 

Here’s what that does. 

It demonstrates that you understand your business inside and out. It shows you’re not afraid to talk about the negatives. And it shows you’re trying to improve your business. 

You can address common objections in the form of frequently asked questions. 

address objections

Network Before You Sell

Can you imagine how many pitches investors go through daily? You don’t want to be just one of the startups they analyze during work hours. 

Instead, try to build a network of people in the startup world to spread the word about your business. 

Think about it. 

Who are people (and funds) more likely to invest in? A company they’ve never heard of before or a startup that they know through a mutual friend?

Start small and build your network. Ask your friends to introduce you to their friends. 

You can attend networking events in the startup community.

Be polite, don’t sell, ask questions, and make genuine connections. 

Consider Stock Dividends

We already established that the number one thing investors care about is profitability. What if you could sweeten the deal and also offer stock dividends besides long-term equity?

Consider this.

You give investors the chance to add to their cash flow as your business grows. They will be getting paid small amounts while waiting for the big payday. 

The important thing is to be very clear on how much you plan on paying out in dividends. 

Remember, investors want to see short-term and long-term returns. Try to offer them both in the same package. 

Stock dividends are a simple way to get your startup noticed. 

stock dividends

Start With One Main Investor

You don’t want to spread your net too wide. If you try to chase everyone, you might miss your shots. 

Instead, you should define your ideal investor and go after them. 

Here’s what you gain by doing this. 

You can create a really targeted pitch and offer if you know who you want to address. You can also network your way to your targeted investor. 

You want one seed investor that can help you grow your startup. Once you have your first (and main) investor, it’s usually a lot easier to get more investors as your startup grows. 

Remember. 

You need one investor to get the ball rolling. 

Impress With Your Name!
The right name can get potential investors interested in your business. Make sure you pick the right name for your business. Try our brand name generator to find the perfect name. 

Storytelling Sells

We talked about personalized pitches, targeted investors, and other tactics you can use. But, there’s one thing you should take care of before finding investors. 

Write an irresistible story. 

I know what you’re thinking – I’m not a storyteller. How am I supposed to do that? 

Don’t worry, it’s not as hard as you might think. The easiest way to create an interesting story is to tie the startup to something interesting that happened to you, other co-founders, or any random person. 

A good story has a human touch. We do this by highlighting events that happened to real people with our story. 

Think about it. 

Investors want to get publicity for your startup. This is how they earn money. They know that an interesting story might get you featured in popular media. 

Focus on your story. Think about what makes you unique. 

The more incredible the story, the more likely you are to get noticed by potential investors. 

brand story

Conclusion

Securing startup funding is critical to your company’s success. Following the tips we shared in the article will put you in a much better position to attract investors and raise the money you need to grow your business.

Have you tried any of these methods? What has been most successful for you? 

Matija

Amazing content is the core of what we do. With more than 5 years of experience in branding, name development, and business, Matija helps create and manage content production.

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