How To Find The Right Investors To Fund Your Startup?

As an early-stage startup founder, it is normal to assume that you can get funding from wherever you want. However, the actual value of investment comes from your associations with the investors that you prefer to work with. The partners you bring into your corporation and the tenor of the affinities you build with them are often more influential than the "name recognition" of the venture capital firms they work for.

While there are many options for sourcing capital funds for your startup, no possibilities are as lucrative as securing legitimate investors. The trick is to find the correct investors for your business. It can often be challenging to find someone who will genuinely get excited about your ideas and share your vision for the future. So, be precise while picking the investors for a startup in India.

Before moving ahead, let's understand the types of startup investors.

Types of startup investors:

• Angel investors
• Venture capitalist
• Corporate VC

Deciding what's essential in an investor or capital source at the outset enables founders to streamline the process of filtering and screening while empowering them to make profitable conclusions. It has little to do with the money part of the equation. Here are fundamental factors to put on your checklist while searching for and selecting investors to participate in your fundraising round.

5 Proven Ways On How To Find The Best Startup Investors In India

The Right Investor For Your Stage

The foundational step is searching for the right investors for your stage or round. Every business owner looks for VC money. Yet, you will probably need to hold Angel Investing Platforms In India or friends and family funding rounds before you get there.

Prepare A Detailed Record Of Investors To Share Your Ideas With

If you have some big names to meet and share your ideas with, then ensure you pen them down somewhere. Once you prepare a list, approach the experienced entrepreneurs you know and request them to help you with appropriate investors' connections for your startup. Taking assistance from knowledgeable entrepreneurs will be a win-win situation for you, as you learn the art of selecting investors and know which investors are best for you.

Industry Expertise

To which industry does your investment partner belong? It's typically the most promising idea to find investment partners who ideally understand your industry and have hands-on experience. Investors should know how the industry has evolved, the market forces affecting it, and where it's being steered. When your investors are familiar with your industry, they can advise you to address the market and avoid pitfalls.

Ability To Fund

There's a checklist that every entrepreneur should follow when raising funds. These include questions like:

• When was the last time the investor funded something?
• How much money or finances is the investor left with?
• How are the investor's other investments performing?
• How equipped is the investor financially?

Of course, you don't want your startup to be the only hope for investors, right? If the investor isn't doing well financially, they will be under a lot of stress, and that pressure will flow down to you and your business. Even if it isn't that serious, having an investor who can provide further funding rounds is more efficient and profitable.

Final thoughts

It's a fact that about 90% of startups fail before thriving, which means only 10% survive. Many factors will transform your startup idea into your envisioned business. You need a unique concept in your specific industry, not to mention investors, for your startup. You need a business plan, marketing strategy, and, most significantly, knowledge of raising capital and finding investors. Gaining knowledge on finding an investor that is perfect for your business can help you bring your startup idea to life.

If you want to onboard an investor, the profitable way is to connect with Venture Catalysts. With VC, you can eliminate the guesswork and ensure that you always get the most acceptable search results to meet your criteria. Encounter the right companies, identify contacts, and connect with decision-makers with an all-in-one prospecting solution.