What All Startups Should Know About Attracting Investors

Even companies like Facebook or Google had their days of disappointment and hardship when it came to bringing on board prospective investors. As a CEO, you've got to acknowledge the fact that investors won't just flock enthusiastically to your startup and park thousands of dollars of their hard-earned cash without scrutinizing every bit of your company. Here's five tips on how to attract investors without the fuss.

Prove Your Startup Works 

Savvy investors never invest in a faulty business model, product, or service. If it doesn't work yet, do not try to pitch it to a venture capitalist or angel investor. You'll only be wasting precious time, which could have been used to improve your startup. Research your market extensively, making sure to identify all opportunities and challenges unique to your business venture. 

Cultivate Relationships

Having connections is invaluable for any startup CEO or business owner. Keep in mind that every person you meet outside could be a potential investor or a connection to someone who might invest in you. Hand out your business card or exchange phone numbers with people you meet on the subway, coffee shop, grocery store, or anywhere else. Keep in touch with old colleges and see if they might be interested in what you have to say.

Be Personable

This doesn't mean you must be servile towards others. Likable characteristics include being honest and friendly. Be genuine with your emotions and exude positivity in every conversation you have with investors and employees. You never know when potential investors might be watching your daily interactions with others, so it's best to adopt a good positive vibe when interacting with anyone. 

Have a Great Team On Board

Your workforce will serve as a key indicator of your company's future success or decline. When potential investors walk into your place of business, they're going to encounter your employees, from your receptionist to your product development team. If your team is unprofessional or incompetent, your investors will certainly think twice about injecting capital to your startup.

Know How to Negotiate

Negotiation skills imply that you're business-savvy and confident of what you want. Many startup CEOs, however, are born to be pioneers and inventors and less of a negotiator. Avoid cracking under pressure by identifying your strengths and weaknesses. For instance, if your immigration papers still have inconsistencies or errors that need to be fixed, look into the EB-5 investor program for investors who will see you as an asset to what they have.

Attracting investors is an art. Use the five tips above to improve your chances of reeling in the right long-term partners for your company. 

About the author

Eileen O'Shanassy is a freelance writer and blogger based out of Flagstaff, AZ. She writes on a variety of topics and loves to research and write. She enjoys baking, biking, and kayaking. Check out her Twitter @eileenoshanassy.


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