April 13, 2024
ways to find investors for your startup

There are many ways to find investors for your startup. Some popular methods include crowdfunding, angel investing, and venture capital. 

Each method has its own advantages and disadvantages. Choosing the right method for your startup and finding the right investors is important. 

Why are investors important?

Investors are essential for two reasons. 

First, they provide the capital necessary to finance businesses and projects. 

Second, investors often play a critical role in helping new businesses grow and succeed. By providing funding and advice, they help companies achieve their objectives more quickly and efficiently.

As businesses grow and expand, they need more money to keep up with their demands. Investors can provide this money by investing in a company’s shares or bonds.

That said, here are seven tips for finding investors: 

1). Ask Family or Friends for Capital

When starting a business, many entrepreneurs seek out startup investors to provide the necessary financial backing. 

However, what if you don’t have any connections to wealthy investors? Or what if you’re not interested in giving up a large percentage of your company in exchange for capital? 

In these cases, family and friends can be a great resource for startup funding

There are no strict rules when it comes to getting money from loved ones. 

Some entrepreneurs may choose to offer them an ownership stake in the company, while others may simply ask for a loan or line of credit. 

Whatever route you choose, make sure you have a solid business plan and repayment plan in place. 

If you are not sure whether or not your family or friends have the funds to invest in your startup, ask them!


There are many advantages to using family and friends to fund your startup. 

  • These individuals have a vested interest in seeing you succeed, and they are more likely to be supportive than people who are not related to you. 
  • Additionally, they may be able to give you access to their network of contacts, which can increase the chances of success. 
  • Finally, if things do not go as planned and you need to seek additional funding, your friends and family are likely to be more sympathetic than strangers.


  • Familiarity breeds contempt.
  • You will be more likely to burn bridges with your friends and family than build relationships with them.
  • They may not be as invested in your success as you think they are.
  • You are essentially asking them to invest in your startup without getting any equity in return.
  • you could be putting your friends and family at risk if the startup fails.

2). Apply for a Small Business Administration Loan

The Small Business Administration (SBA) offers a variety of loans to help small businesses start, grow and succeed. SBA loans are offered through private lenders, such as banks and credit unions, and through the SBA’s own lending program.

The most common type of SBA loan is the 7(a) loan, which is available to businesses of all sizes. The 7(a) loan can be used for a variety of purposes, including starting a business, buying equipment or inventory, refinancing debt, or expanding an existing business.

Eligible businesses can borrow up to $5 million through the 7(a) loan program. The interest rate on these loans is typically lower than the interest rate on a conventional loan.


  • SBA loans are often very competitively priced, which can reduce your overall startup costs. 
  • They come with a variety of favorable terms, such as low interest rates and flexible repayment options.
  • The SBA is well-known and respected in the startup community, which may give your company an edge when seeking funding from other potential investors.
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SBA loans come with plenty of cons, including stringent criteria. 

  • If you don’t have a strong credit score, you may not be approved for an SBA loan. 
  • You may also have to wait months or even years to receive your loan approval. 
  • The loan terms can be long and demanding, so budget carefully ahead of time. 
  • Your startup may not be eligible for certain loan programs.

3). Consider Private Investors

A startup’s success depends on its ability to find the right investors. Angel investors and venture capitalists are two types of investors that a startup may encounter. 

Angel investors are typically individuals who invest their own money into a startup, while venture capitalists are firms that invest in multiple startups at once. 

Both angel investors and venture capitalists can provide valuable resources to a startup, but they differ in terms of how they approach investing. 

But Angel investors are more likely to take a personal interest in the company and be more hands-on, while venture capitalists are typically more interested in making a financial return on their investment. 

Regardless of which type of investor a startup chooses to work with, it is important to understand the differences between them and what they offer. Doing so will help a startup make the most informed decision about its investment options.


  • Private investors can be a great source of capital for your startup. 
  • They are often more familiar with the business world and are therefore better equipped to help your company grow. 
  • They can provide you with guidance and support throughout the startup process, which can be invaluable. 
  • Private investors often have a sense of urgency when it comes to investing in new businesses, which can help speed up the process.


Private investors can be a valuable resource for startup funding. 

However, there are several cons to consider before turning to private investors. 

  • It can be difficult to find a reputable private investor. 
  • Private investors typically require a high return on investment, which may not be feasible for your startup. 
  • They may not have the same level of experience and knowledge as traditional financial institutions when it comes to technology startups.
  • Can be difficult to work with.

4). Try Crowdfunding Platforms to Find Investors

Crowdfunding platforms are websites or apps that allow individuals, businesses, and organizations to solicit contributions from a large number of people, typically in exchange for rewards such as shares in the company, products, or services. 

These platforms allow donors to make pledges (usually within a set time limit) for items such as arts and crafts, movies, books, and other creative projects. 

Some of the most well-known crowdfunding platforms include Kickstarter, Indiegogo, and GoFundMe.

  • AngelList – AngelList is one of the largest platforms for connecting startups with investors. It’s also one of the most user-friendly, making it easy for entrepreneurs to find potential investors and vice versa.
  • Kickstarter – Kickstarter is a well-known crowdfunding platform that has helped many startups get off the ground.
  • Indiegogo – Indiegogo is a crowdfunding website that allows people to raise money for their projects. The site has been around since 2008 and has raised over $2 billion for projects. Indiegogo is popular among startup entrepreneurs because it offers a flexible platform that allows them to raise money from a large number of people.
  • GoFundMe – GoFundMe is a website where people can create fundraising campaigns for a variety of reasons. Some people use it to raise money for medical expenses, while others use it to help family members who have fallen on hard times. It’s also been used to help victims of natural disasters and other serious events. Whatever the reason, GoFundMe makes it easy for people to get the support they need.
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This section is not complete without mentioning the types of crowdfunding platforms:

a). Reward-Based Crowdfunding

Reward-based crowdfunding platforms are a newer development in the crowdfunding space. 

These platforms allow backers to pledge money to a project or venture in exchange for tangible rewards, rather than just the intangible satisfaction of supporting a good cause. This type of crowdfunding is growing in popularity, as it offers backers more tangible benefits for their pledges. 

Some notable reward-based crowdfunding platforms include Patreon and Pozible.

One of the key advantages of reward-based crowdfunding is that it can help entrepreneurs and small businesses raise money for their ventures. This is because these platforms offer a lower barrier to entry than traditional investment channels, such as venture capital firms. 

Moreover, reward-based crowdfunding can help businesses cultivate a community of supporters who are passionate about their products or services. This can be beneficial for businesses in the long run, as they can tap into this community for marketing and feedback purposes.

b). Donation-Based Crowdfunding

Donation-based crowdfunding platforms are a great way to raise money for a good cause. There are many donation-based crowdfunding platforms available, and each one has its own guidelines and procedures. Some of the most popular donation-based crowdfunding platforms include GoFundMe.

Each platform has its own benefits and drawbacks. 

For example, Kickstarter is very popular for creative projects, such as films, music albums, and books. 

However, if your project doesn’t reach its funding goal, you don’t receive any of the money that has been pledged to you. 

Indiegogo is less restrictive than Kickstarter and allows you to keep the money raised even if you don’t meet your funding goal. However, Kickstarter has a higher success rate because of its quality control and more selective process.

5). Participating In Incubator Events

If you are a startup, incubators can be a great way to get funding and notoriety. 

But what are incubators, and how do you join one?

Incubators are organizations that provide funding and mentorship to startup companies. They can be a great way for fledgling startups to get their feet off the ground. 

And notable examples include Y Combinator and TechStars.

To join an incubator, you typically need to apply and go through a selection process. The application usually asks for information about your company, including its size, stage of development, and business model.


  • Joining a startup incubator can be a great way to get your business off the ground and learn from some of the best entrepreneurs in the industry.
  • Incubators provide support and resources, including office space, mentorship, and networking opportunities.
  • They also offer potential investors access to your company before it has even launched.


Joining a startup accelerator may seem like a great idea, but there are many cons to consider before signing up. 

  • Most accelerators are very selective and only accept a small percentage of applicants, so chances are you will have to wait a while before being accepted. 
  • Most accelerators also have strict rules about what companies can participate in, so if you don’t fit the mold, your chances of getting in are slim.
  • Many accelerators require that applicants commit to spending at least 2-3 months in the program, which can be a long time commitment. 
  • Some accelerators may not provide enough mentorship or guidance to help startups succeed.
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6). Consider Blogging

Yes, startup companies are always looking for new and innovative ways to get their names out there and attract attention from potential investors. 

While there are a number of traditional methods that still work (like the ones we’ve already looked at), one underrated way to get attention is through blogging.

Blogging can help you build an audience of followers who are interested in your product or service. It also provides a way to share your company’s story and connect with potential customers on a more personal level. In addition, blogging can be a great way to generate leads and attract startup funding.

Many investors routinely search for new startups to invest in, and by having a well-trafficked blog, you increase the chances that your company will be discovered by these investors. Additionally, blogging can help you build relationships with other entrepreneurs, which can lead to future business opportunities.


There are a number of benefits to using blogging as a way to attract startup investors. 

  • Bloggers can build a following of interested individuals who may be interested in hearing about new companies and technologies. This can help startups reach a wider audience and potentially find more investors. 
  • Blogging can also help startups become more transparent about their businesses and operations. This can make them more attractive to potential investors and customers, as well as lead to improved branding.
  • blogs provide a public face for startups and can help them gain recognition within the startup community. 


There are several cons to using blogging as a way to attract startup investors. 

  • Blogging is not a guaranteed way to get noticed by potential investors. 
  • Many startup investors are already well-versed in the tech industry, so they may not be drawn in by a blog post that focuses on a niche market. 
  • Blogging can be time-consuming and require a lot of effort, which could limit the amount of time that a startup can devote to attracting investors.

7). Start Sharing Your Product

If you have a product or service to share, don’t wait any longer! 

The time is now to focus on getting your product or service out there in the hands of customers, influencers, and in front of investors. 

You need their feedback in order to make necessary changes and improvements. 

And most importantly, you need their word-of-mouth marketing to help get the word out there. 

So start sharing and see what happens!

Final Thoughts

In conclusion, there are a number of ways to find investors for your startup and raise millions. 

You can reach out to angel investors, venture capitalists, or crowdfunding platforms. You can also look for grants or government funding. 

Whatever route you choose, be sure to do your research and make a strong case for your startup. 

And don’t forget to stay positive and keep pushing forward!

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