subject: How To Find Investors For Your Business [print this page] Finding the right investor is one of the toughest challenges a new business can face. All businesses need funding. Unless you have unlimited capital there will come a time when you need outside investment. Funders are needed to grow a business, to set up a business and to provide investment for a business expanding in a new direction. It is difficult sometimes to know how to find investors for your business. What type of investor is best for you and where are you most likely to secure investment? How to find investors is a concern but when you look a little closely at the subject youll find there are a number of options available for you to try.
For instance, you can find private equity investors for your business. Private equity investors are venture capitalists and angel investors. Both types of investors typically provide investment for start-up business and early-stage companies, although private equity firms also supply investment for established companies. Private equity investors are looking for businesses with a high potential for growth and profitability. Many firms and individuals have a set idea of what kind of business they are looking to invest in, for example the sector, the region or the stage your business is at, so you should make sure you fit the bill before approaching these investors. You will also need to find out if the firms or individuals are making investments at the time you need funds. Firms run on a cycle of investment and you need to match the cycle in order to benefit from the funding opportunities. Before you approach these investors, find out a little bit about them. When did they last make an investment? How much did they invest and who did they invest in? Do they have specific investment criteria? Have they already invested in competitors of yours?
When looking for investment as a new, start-up business it is useful to combine financial investment with investment in the form of knowledge, expertise and experience. Angel investors can provide guidance and business advice as well as money. Many angel investors only invest in companies where they can have input into the direction of the company and its decisions. You need to decide how much input you want from outside investors. You also need to consider that investors who put up funding for an equity stake in the business will dilute the profits for your existing investors, founders and shareholders. Look to see if you can keep more equity by asking for less funding.
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