To find investors, decide what kind of money fits your business (angels, venture capital, lenders or friends and family), prepare a short pitch and the numbers behind it, then reach the investors who fund your stage and sector through introductions, investor networks, events and platforms such as PitchStreet.
Finding investors is mostly a matching exercise. The right investor has money for your stage, understands your industry and wants the kind of return your business can deliver. Reaching a few well-matched investors works far better than sending the same deck to hundreds.
The steps below work for startups and established businesses alike. PitchStreet lists investors who state what they fund and how much capital they have available, so you can shortlist before you reach out.
Step 1: Choose the right kind of funding
- Friends and family: fastest for very early ideas, but agree terms in writing
- Angel investors: individuals who back early-stage companies, often with expertise as well as money
- Venture capital: for companies aiming at very fast growth and a large exit
- Private lenders and banks: for businesses with assets or cash flow that can repay a loan
- Grants, crowdfunding and revenue-based financing: non-traditional options that can mean giving up less ownership
Step 2: Prepare before you reach out
- A one-sentence description of what you do and for whom
- A short pitch deck: problem, solution, market, traction, business model, team, the amount you are raising and how you will use it
- Basic financials: current numbers and a realistic 2-3 year projection
- Answers to the obvious questions about competitors, risks and how investors eventually get their money back
Step 3: Find and approach investors
Build a shortlist of investors who fund your stage, sector and location. Use introductions from founders, advisers and lawyers where you can, and add investor networks, pitch events, accelerators and platforms such as PitchStreet, where investors post what they are looking for.
Keep the first message short and specific: what you do, the traction you have, how much you are raising and why this investor is a good fit. Follow up politely once or twice, and keep investors updated as you hit milestones.
