In 2021, startup global investment amounted to $671 billion, almost double the previous year. It shows that a startup has a golden opportunity to seek the attention of these investors by crafting an excellent pitch deck for startups. Starting a business is undoubtedly an exciting journey, but finding the right investors will fuel your company. Hence, finding and securing potential investors is a challenging task. The right investor brings valuable experience and connections that elevate your startup’s success. So, be choosy while searching for investors. To ease your work, here are a few steps that will aid you in finding suitable investors for your startup. Scroll below to read:
Borrowing money from close friends, family, and investors is easier than from banks or investors because they already know you well. They will most likely fund your startup because your vision inspires them. Getting legal counsel is a good idea if you plan to borrow money from relatives or friends. One benefit is that you have flexibility in returning the money. However, taking out a loan could ruin the family dynamic and the friendship. Thus, honor the agreement and work hard to return the funds.
Those who search for company prospects to engage in as private investors typically do so in exchange for equity in the corresponding organizations. There are two primary categories of private investors:
Venture capital investors: A venture capitalist is an investor who lends money to businesses in return for various benefits, including stock ownership, a seat on the board of directors, or a portion of the business’s future earnings. They might be venture capital organizations or individuals, and they typically select early-stage businesses with faster growth prospects than the typical market. So, it’s advised to always prepare a venture capital pitch deck that attracts investors and makes them understand your business perfectly.
Angel Investors: Angel investors have a lot of extra money to spend and look for promising startup businesses to invest in, usually in exchange for shares. Angel investors are typically more concerned with the organization’s long-term future than venture capitalists, who invest to make a sizable profit from their investment.
The Indian government introduced several lending programs to help newly established businesses. It recognized the value of startups in fostering innovation and economic expansion. It continues to promote educated young entrepreneurs, SC/ST persons, villages, rural regions, etc., all of which contribute to the growth of India’s economy. Several ministries and agencies created plans to offer newly established businesses monetary, physical, and administrative assistance. The Government of India has introduced varied programs such as the Smart Farm Challenge by STPI, Startup India Initiative, Dairy Entrepreneurship Development Program, Pradhan Mantri Mudra Yojna, Startup India Seed Fund, Digital India Bhasini, ASPIRE Startup Leadership Program, and many more.
A government organization called the Small Business Administration was established to support small companies. They may guarantee the loan for you and assist in linking you with licensed lenders, so even if they don’t offer loans directly, the lending institution may be able to offer you far better interest rates and repayment conditions. The Small Business Administration can provide you with information on how to create, launch, and expand your new company and assist you in obtaining capital.
The following are the top tips that aid you in networking with investors:
Investors, unless they are friends or family, typically research several startups before making an investment. You can increase your chances of getting an investor to choose your startup by having a comprehensive business plan that explains your organization’s goals, your plan for achieving them, and your timeline. Also, put effort into making a perfect pitch deck for the startup.
When networking with possible investors to raise capital, you may receive deal proposals, which may ask for more stock or management control than you are willing to give up. While getting an investor is a significant step for a startup pitch deck, you must be clear about how much ground you’re willing to give up and turn down offers that don’t fit those parameters.
Prepare a 30-second Business Startup Pitch Presentation.
Potential investors might not have the time to hear the whole narrative of your business when you meet with them. Prepare a concise, thirty-second pitch highlighting your goals and outlining your actions.
Make Sure Your Money is in Order
Startups usually don’t have highly complicated financial records, but it’s still crucial to have everything in order and prepared to show potential investors. Possessing all the necessary information may indicate a secure investment and increase your chances of locating the ideal partner.
Finally, identifying investors and ways to fund your startup in 2024 is not a random process; it needs preparation and knowledge. Using friends, families, and other acquaintances can give a business more manageable conditions for repayment; however, such agreements should be settled to keep people in your contact list. Venture capitalists and angel investors are other forms of funding for the startups, which allows them to bring in valuable capital and industry nodal contacts and, therefore, prepare a realistic business pitch and business plan. New business schemes and loans are also available to enhance funding and resources for businesses, particularly new businesses based solely in targeted locations or industries. However, knowing how to communicate with investors, having a clear message, expectations for investment terms, and having clean books all increase the chances of attracting the right kind of funding. When both approaches are used, you get to find the kind of investors interested in your idea and willing to fund the startup. Even taking the help of a pitch deck agency will be beneficial, as these experts will direct you better in the early stage of your startup funding.
Delhi:
Workshala, D-9, Vyapar Marg, Block D, Sector 3, Noida, Uttar Pradesh 201301
Chandigarh:
Plot No. D-84, Sahibzada Ajit Singh Nagar, Punjab 160055
Canada:
3401, 80 Absolute, Mississauga, Ontario
