June 10, 2019

Financing 101: How to Find Venture Capital for Your Tech Startup

Aaron Vick

Aaron Vick
CSO/cicayda

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You've hired a truly epic team and dreamed up a tech product that you're certain will have a huge impact on the industry.

You have serious faith in your abilities and the expertise of your team members, and you know that your tech startup will be a success.

You just need the right funding in order to make it happen.

If you're in the process of looking for private investors, then you need to read this post.

From making the right kinds of connections at industry events to meeting with a mentor to help you get to know the right people, this post will help you to find private investors to fund your tech startup.

1. Craft the Perfect Business Model and Pitch

Before we get into anything relating to where you can find angel investors, let's make sure that you know exactly what to do once you connect with one.

After all, especially in today's crazy-competitive startup scene, you likely won't get more than one chance to make an awesome first impression.

So, start by building the ideal business plan.

Talk about your industry and professional experience, as well as that of the team you've assembled. Make sure you've proven that you've conducted a serious amount of research on both your target market and your competitors.

Above all, never underestimate the power of hard data.

Include growth and revenue projections, and of course, when an angel investor can expect a return on their initial investment.

Talk about how your company is actively disrupting your industry -- after all, no investor wants to put their money into a knock-off of an already successful brand.

Remember to tell the story of your company -- why you started it, what you hope to achieve, and the overall mission statement of your brand.

After all, private investors work with companies that they connect to on a personal level just as much as they do ones that show the possibility for financial gain.

Make them believe in your brand, your products/services, and above all, your ability to make things happen.

2. Hit up Industry Events

When you're looking for private investors, there are few better places to go than industry conferences, fundraisers, lectures, and other events.

Remember that angel investors are just as likely to be speaking at these events as they are attending them.

You might even consider speaking about your startup up another relevant topic, to get the attention of angel investors in the room.

Then, it's all about your networking skills.

Make sure that you hand out your business card and speak to as many people as you can. Even consider wearing branded clothing, so that those who you don't have the chance to speak to at least know your company's name.

3. Follow-Up over Email

Once you've connected with angel investors for startups at industry conferences and meet-ups?

It's time to start building a relationship with them.

As soon as you can after the event where you first met them, send a quick follow-up over email. Make sure that you mention the name of the event where you met them, the date of your first meeting, and what you all spoke about.

Keep it short and sweet. Remember, angel investors just don't have the time for long emails.

Ask if you can give them a 15-minute pitch meeting, or if they'd be willing to meet for lunch.

Above all, don't be afraid to put yourself out there. After all, angel investors love those who are ready to hustle for what they want!

4. Find a Business Mentor

Another awesome way to find angel investors for startups?

Consider asking a prominent leader in your industry to serve as your mentor.

First of all, this is an amazing way to learn the ins and outs of the startup world. There's no way that you won't come away from any type of mentor opportunity with a serious leg up on your competitors.

But, because you're working with an experienced CEO, Founder, or President of a company?

You'll also learn the big angel investor names that you need to watch out for.

You may even have the opportunity to deliver them one of your elevator pitches or ask them to take a quick look at your business plan.

5. When in Doubt, Look Online

So, you just weren't able to make the kinds of in-person connections with private investors that you were hoping for this time around.

While it's important to be persistent and to keep trying, many people don't know that there are tons of websites out there that are designed to help angel investors and startup creators find each other.

You can easily apply for funding from these investors online, or simply use them to set up a meeting with a potential investor.

Even if these investors say no to you, they often end up forwarding it to another investor that they know might want to work with you.

How to Find Angel Investors: Wrapping Up

As you've learned from this post, there are likely many more ways than you initially thought to find angel investors.

You just have to know where to look -- and always stay on your grind.

There's certainly never a dull moment in the tech startup scene.

And, if you want to become successful and watch your company grow, you need to study up on what it takes to make your startup a winner as soon as you can.

Comments? You can contact me directly via my AdvisoryCloud profile.

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