The Performance Mentor
Finding Investors for your Project
Title: Finding Investors for your Project
Many people have dreams of starting their own business or performance company, but this is not always an easy task. A big challenge that aspiring business owners or entrepreneurs face is to find and get help in the finance department. If this is something that you can relate to, the following write-up has information about finding investors for your project.
First and foremost, there are traditional means of getting funding from personal savings and investments or family and friends. Other popular choices include lenders or investors. Lenders will want to see a business plan as well as exactly how you are going to repay the funds. However, when working with them you have to be conscientious about their financing conditions and terms such as pay back periods and interest rates. Lenders are actually financing institutions like credit unions and banks. Investors will want percentage or equity of your business in return for their investment. They are looking to double-up their investment in two to three years.
We will now take a look at other options to find investors.
LinkedIn, Microventures, AngelList and even Quora can be used to look for Angel Investors. But before even going there, be sure that you can establish a credibility.
Merchant banks and boutique investment:
These are created to assist companies and investors in their particular industries. They are not only the resources but the expertise to help raise capital.
This is now a very popular trend that you can research. You could come up with a campaign for your concept or business to raise funds from people who invest their money. People will give money if they believe in the campaign as well provide some incentives. Bear in mind that there is a similar concept called peer-to-peer lending, but this involves actual investors who are putting money in listings which are created by borrowers. The investors will choose to put funds in the listings which fit their criteria and make returns based on the financing terms.
If you still don’t have any idea where to do it, you might want to check these sites; Kickstarter, Crowdcube, Seedrs, SyndicateRoom, Indiegogo, RocketHub, GoFundMe or Crowdrise. You should also use social media to post information and get more donation because you never know who can help and support you in your endeavour.
Apply on accelerator programs.
This is offered by seed funds, Investment Firms, large established entities, and universities. This programs are all across UK and US. If you still haven’t heard any accelerator programs, here are some who are hugely competitive; Seedcamp, Entrepreneur First (EF), Techstars, AngelPad and YCombinator. Programs like these are one great way to meet great people and even other founders, get real guidance from people who are in the same industry and help you fix rough edges.
Venture capitalists and angel investors:
These are closely related, yet slightly different. The venture capitalists are actually investors who put money in start-up businesses to earn a high rate of returns, but don’t necessarily have the experience or knowledge that is needed for your venture. Angel investors are formed often in groups and they have applicable experience and knowledge in the particular business industry that they are investing in. They will provide value to a business on a more personal level. For this, you might not need referrals as these investors are quite easy to find.
You could apply to some foundations to get grants if your project is focused highly towards economic development and social responsibility. Grants offer an advantage because you won’t have to repay them.
All in all, you really have to network if you want to find good investors. There are a number of options, resources, and avenues out there, so you should do your homework to know where and how to find them. Just ensure that you find the right one to fit your situation because they all come with specific guidelines, conditions and terms.