As a founder for the first time looking for investors, how to attract the interest of a potential investor?
These responses are provided by the Young Entrepreneurs Council (YEC), an invitational organization of the most promising young entrepreneurs in the world. YEC has also launched BusinessCollective, a free virtual mentoring program that helps millions of entrepreneurs start and grow their businesses.
1. Sell a product, not an idea
Investors are not really looking for ideas, and if you end up finding someone to put money into your business, you will end up losing significant equity. As long as you and your co-founder can handle the financial burden, focus your energies on creating a good product. With this taken care of, approach the investors and show them how you can make money for them.
– Derek Robinson, Top Notch Dezigns
2. Tell your personal story
Tell your personal story of how you came into your business or niche. It should include some personal details about you and your past work experience, and show why you are passionate about your current niche. Also include some specific anecdotes. When a potential investor can see the face behind the business, so to speak, they might be more inclined to offer financing.
– Andrew Schrage, Personal Finance, Personal Finance
3. Do your due diligence
Do as much due diligence on the type of investors you want before launching them. This will limit the pool of investors and make your pitches more personalized and attractive to the investors you target.
– Brian David Crane, Appellant Smart Inc.
4. Building the Right Team
Investors invest in people, so if you are a founder for the first time, you can stitch the interest of potential investors by surrounding yourself with other people who have strong backgrounds. Call on employees or board members who have played key roles in other successful companies, particularly in the area of business that are somehow relevant to yours.
– Adam Mendler, chairs of Beverly Hills
<img class="aligncenter size-full wp-image-37795" src="https://businessdigit.com/wp-content/uploads/2018/03/impressive-investors-101.jpg" alt=" Pitching at the Investor "width =" 810 "height =" 540 "/>
5. Have a proof of concept already
So many entrepreneurs and creatives only have ideas that they believe could be a "game changer", so they speak a good hype around all the assumptions. But a potential investor is much more interested in a company that knows its target audience, addresses that target audience and has recently managed to capture them.
– Daniel Griggs, ATX Web Designs, LLC
6. To have passion
If you are going to sell your idea to an investor, you must be 100% in love with the idea yourself. If you are green, investors want someone who is "all in" about their idea or business. You will be excited will get your investors excited.
– Colbey Pfund, distribution LFNT
7. Focus on the mission, no money
I remember when I was working with a startup that focused on their mission. They were so focused on the mission that the investors came to them because they saw their potential. If you really want investors, then focus on your mission rather than money. This will encourage investors to want to finance your business because of the effect "afraid of missing out".
– Sweta Patel, Silicon Valley Starter Marketing
8. Have the gold standard: Income
Acquire traction, exposure and build a prototype are great steps. However, the gold standard is to have income that finances your operation. As a founder for the first time, this will help you design your story while showing a promising roadmap for growth. Give your investors the peace of mind that you understand your goal is to attract customers to spend money on your products and services.
– Krish Chopra, Nurse Practitioner, Clinical Placements
<img class="aligncenter size-full wp-image-30146" src="https://businessdigit.com/wp-content/uploads/2018/05/1525639279_105_11-ways-that-early-founders-of-businesses-can-attract-investor-interest.jpg" alt=" Planning and creating content "width =" 810 "height =" 540 "/>
9. Have a Strategic Content Plan
A strategic content plan not only attracts new customers to your website, but also brings investors looking for the same. Find out what your customers are asking for on Quora and write content that answers their questions. This will help you attract many customers, and maybe some of these clients will also be investors.
– Jared Atchison, WPForms
10. Building a solid foundation
For an investor to try his luck with a founder for the first time, an important act of faith is required. Build an operation investors will want to bet on by bringing together a team of seasoned professionals with proven track record. A large team will streamline processes and make them as transparent as possible, ensuring that everything is in order for the due diligence phase of investor interest.
– Ismael Wrixen, FE International
11. To have social proof
It is well known that social proof is a key filter, most often in the form of a double opt-in introduction of someone in whom the investor has confidence. Understand that investors bet on the horse (the company), the jockey (the founder) or the track (the market). Ensuring that you can talk articulately to each of these three will help show that, although this is your first race, you are not an amateur.
– Band of Zvi, contacted