Just a few years ago, drawing attention of investors into start-up projects was not easy. All that has changed over the past few years, though, possibly due to a change in perspective of the investors. Today, one can consider looking up a wide range of investors to support their start-up. Here are some ways to go about:

Family and Friends

We depend on them for emotional and financial support. So why not ask family members or friends to be the first investors in your start-up? There are two ways you could ask them to get involved, financially—by giving you loans, or by making investments in your project. But for that, you need to be able to present your business before them the way you would to an unknown private investor—with firmness and clarity.

But having someone close as a business partner or loan provider comes with its own set of risks. Failure in business could very well result in end of the relationship.

Angel Investors

Angel investors are high net-worth individuals who offer financial aid and resources to start-ups.  They are highly beneficial for start-ups that need funding during the early stages of escalation. Capital and aid are provided in exchange of some equity in the start-up. Here are some well-known angel investors you could check out:

AngelList is a website that raises funds for tech start-ups and aids in launching their business with the assistance of angel investors. 

Coffee Mug is an online platform that does the heavy-lifting of connecting you with a relevant member, based on your long-term goals and short-term needs. 

Life Science Angels is one of the top angel investment groups that focuses primarily on industries such as biotechnology, pharmaceuticals, medical devices and diagnostics. 

On Startups is a fantastic website that can be highly beneficial for any start-up.

Crowd Funding

Crowd funding is a great way to get funds needed for a start-up. It is a type of funding in which a large number of people invest in your start-up.

There are various types of crowd funding platforms:

GoFundMe is a donation-based crowd funding platform, where people donate to the company for nothing in return. 

Kickstarter and Indiegogo are reward-based crowd-funding platforms where investors get rewarded by start-ups for investments made (usually with early access to product or service the company hopes to sell). 

OurCrowd is an equity-based crowd funding platform where investors take some ownership in the company. The start-up does not have to pay the investment back to the investors, as in return, they take a share of profits if the company does well.

Social Media

In a tech-savvy world where everything depends on the internet, social media can be your bosom buddy. It is a really great platform where the rest of the world could discover your product or service and it still is one of the most cost-effective methods for reaching out to a broader audience. Social media is also an excellent medium to get access to “events” where you may be able to gain attention of investors for your start-up. 

Regular posts and updates about your product become very important, in order to get your product or service known. Effective collaboration with influencers and direct messaging are powerful ways to get a great start-up attract investors, leading to growth. 

LinkedIn, Facebook, Twitterand now Instagramare some social media platforms being widely used for the purpose.

Blogs

Blogging too could be an effective way to lure investors. What could be better than sharing your story, explaining and sharing the process of developing your idea? You may be able to catch the eye of potential investors that way.

Many people maintain a blog that centres on investing and angel investors. So, an insightful comment on their blog could be powerful too.

There would be a lot of degradation when you present your ideas to investors, whether you share a close relationship with the investor or not. So it is important to stay focused on your goals, and say no when necessary.

The writer is the founder of 36 Lebzelter

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.