Where to Find investors
Where can my startup find investors to invest in my company? Startups have been searching for the answer to this golden question for years and this article provides a basic overview to answer this question.
What is an Investor?
First, let’s look at what an investor is and how they help your startup grow. Historically, an investor was seen as someone with a relatively large net worth that provides financial support to a company to help them grow and develop. Many times the investor receives either some type of reward or a percentage of ownership in the company, and when the company turns a profit, so does the investor on their initial investment.
Nowadays, due to platforms such as PicMii, these investors don’t need a large net worth anymore. Now, anyone that has $10 to spare can be an investor and back these innovative startups. These investors can have two relationships: a short-term, one-time investment in the company to help them get off the ground. Or, investors can have a long-term relationship where they invest multiple times during the early stages to continuously support the company’s growth.
Separate from a typical investor is an accredited investor who has fewer regulations on the amount they are able to invest. An accredited investor is a business entity or individual that have met the following specified SEC requirements of wealth:
1)Any person whose net worth or joint net worth with that person’s spouse exceeds $1,000,000 (minus the value of their primary residence).
2) Any person who made $200,000 or more in each of the past two years, or $300,000 together with a spouse, and has a reasonable expectation of reaching the same income level in the current year.
Meeting these requirements allows for accredited investors to back these amazing startups with higher investment totals providing them with more equity in the companies.
Where to Find Investors?
There are plenty of outlets where startups can get in front of possible investors including online platforms, startup events, and networking. These are just a few channels that help companies get in contact with crucial investors.
The best way to get in contact with investors is to use online platforms such as PicMii. We allow startups to create a virtual pitch and the ability for thousands of investors to view your pitch and back your company if they believe in your product or service. This is one of the easiest ways to get in front of investors and receive investments in a fast and efficient manner. Online platforms can be the most reliable way to get in front of a mass amount of investors in a short period of time.
Attending startup events can be extremely beneficial to get face-to-face with many different types of investors. Startup events are in many different locations and happen fairly often. Staying on the lookout for these events can benefit a company by getting your name out there quickly. Many times, these startup events have many investors extremely interested in financially backing businesses with potential success in the near future. Staying vigilant by attending events can yield many potential investors.
Networking and reaching out to possible investors on varying platforms can be helpful but is the least reliable channel. This can be very hit or miss but reaching out with a well-organized pitch deck and fee schedule can give you better chances of receiving responses from these cold calls. The odds of receiving a response when it comes to cold-calling can be very small but never zero.