investors for your business

How To Find Investors For Your Business

An investor is an individual, a firm, or a mutual fund that commits money (called capital) with the hope of getting a financial return. This money is called an Investment.

When people invest, they do so with the hope of getting double or more of that money later in return. The money is used to support the growth and the running of the business.

There are many channels in which investment can be made. They can come in the form of stock, bond, Exchange-traded Funds (ETFs), silver, gold, etc.

An investor does not just plunge their money into business ventures blindly. They carry out technical and fundamental analysis to determine the prospect of that company.

Traders differ from investors in the sense that traders do business to get gains in the short term, while investors do business for the sake of the future.

How Do Investors Operate?

How investors operate differs.

Some investors are inclined to invest in low-risk businesses, which results in a conservative result, such as a certificate of deposits and some bond products.

Other investors, on the other hand, tend to go for businesses that are high-risk with the hope of making a bigger and larger profit.

These sorts of investors invest in emerging markets, stocks, and currencies.

There is a concept called institutional investors. They are firms that invest in stocks and other financial instruments to build a reasonable portfolio. Examples of these firms include mutual firms and financial firms.

These types of investors can gather money from several other investors who may be individuals or firms. This means institutional investors have a greater influence on the market and also possess influence over the smaller retail investors.

Finding Investors

Finding investors can be a difficult task, especially when your business does not have the prospect of doubling their money. Investors consider a host of things before risking their money on any venture.

Investors are not Father Christmas; they do not dash out money.

Depending on your business location and what it does. You may discuss with as many as 40 investors, and there’s a chance that none of them will buy into your idea.

That’s how difficult it is to find an investor.

Below are ways that can help you find an investor for your business.

Consider Your Industry Friends

This is one of the simplest ways to get Investors to invest in your business.

In this, the strategy is to talk to your colleagues who are in the same industry with you and may have built a successful business for themselves via the assistance of investors.

Convince them to give you a recommendation that will give you access to those investors.

Many investors tend to find networks depending on the specific industry or market they are interested in. So, if an investor is interested in biotech, they look for other biotech companies through networking.

Top-tier business schools

Business schools are other sources of investment. They are renowned for investing in businesses that have prospects.

You can call on a business school with your business idea or plan and convince them to buy into the idea.

They normally have a network of investors who may be an alumnus, a member of staff, or someone who has an affiliation with the school.


The internet is another medium through which you can find investors for your business. The kind of Investors you find here are called Angel investors.

LinkedIn is a sure place to begin.

The easiest way to win these guys over is to demonstrate credibility and honesty.

Look Out For Angel Investor Network

These are service-based networks that are responsible for servicing a location. Angel investor network spends from a fund that has been set aside by an investment firm to search for deals on behalf of the network.

Angel investors have the right to hide their identities.

When you apply to be considered by an angel investor, applications are prescreened. This is because founders can find themselves in a situation where they get so many offers from investors for a similar business.


You can get access to different types of investors on crowdfunding sites.

In these sites, for instance, you can meet individuals who are interested in the kind of business you do and who may want to be a part of it.

You may also find philanthropists who are out there to help people turn their dreams into reality.

You’ll need to study the crowdfunding site you intend to join closely to match your profile more focus and intentions. This is because many crowdfunding sites have a manner in which they incentivize investors.

Private Equity Firms

A private equity firm allows you to access millions of cash in funds. They are considered a traditional route to get investors to fund your business.

Private equity firms normally invest in most start-ups that have the potential to grow into something major. You can also approach a private equity firm to help you fund your business.

Online Lending Sites

Getting a bank loan for your business may be difficult owing to the strict conditions they attach to giving out loans. You can check out an online lending site to getting funding.

These sites can be peer-to-peer platforms or large investors that are looking for businesses to invest in to make a profit from the conditions binding the loan.

Some examples of these lending platforms include TrustLeaf, OnDeck, etc.

Family And Friends

This is the most common means of seeking investors for your business.

You can meet and discuss with wealthy family members and friends and convince them to invest in your business.

The rule is that you separate business from family ties.

Ensure everything is in writing and also spell out clearly the business risks so they can be aware of what they are going into.

To Wrap It Up

There are many channels through which you can get funding for your business. Take advantage of one of them.

Remember that if you are unsuccessful in one of them, there are more you can try.

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *