The success of every business looking for investors is measured by the total amount of money received. Finding funding might sound easy, after all, hundreds of companies have managed it before! Every day we are bombarded with media coverage on businesses who have successfully raised capital. From the entrepreneur who has a dream, to the companies that require funds to springboard sales. With over 400,000 new businesses starting every year in the UK, the competition for being the best new kid on the block, is steep. Many of you will have seen the multitude of fundraisers who have achieved and surpassed their goals, and of course you are keen for the same thing to happen for you. But it’s not as easy as you think.
Reason for Funding
Perhaps you are seeking startup funding, or are a small business wanting to grow faster. Both require a high quality and individual style of pitch. This is so important, though can be a waste of time if it does not reach the correct audience. As such, all the aspects used to secure funding approval, such as social media, are only as good as those who see them.
Sometimes, no matter how good your idea is, and how well you sell yourself, it will still take perseverance to find the right backers. Targeting the correct investors is paramount to raising funds and key to a victorious fundraising campaign. And whilst you may know a lot of people and have a huge social following, your friends, family and customers are not necessarily able to provide all the funding you need. Or more importantly, eventuate your cornerstone investment.
Types of Investors
There are many types of investors. From private individuals to groups who pile their resources together to make a bigger pot. On average you need to approach about 40 before the bait is taken. Looking for investors can be very time consuming. Propositioning a small time investor is a huge gamble and your idea will have to be of exceptional interest to win their approval. Some investors like to spread their portfolios and hedge their bets. However, this takes extensive management. A lot prefer to make things easy for their systems and simplify their game. Therefore, it is often better to target those already in your market area.
Where to Look for Investors
Unfortunately, achieving high quality investors can be more like finding a needle in a haystack. They don’t put themselves out there or they would end up with a huge inbox of fundraising wannabes! With GDPR, or General Data Protection Regulation, it is impossible to glean contact information without consent. So don’t waste your time trawling the internet, searching for contact details of the investors you have read about in the papers! A more productive way to look for investors is to sign up to a GDPR database. And if you are a UK entrepreneur, you’re better off with one based in your own country.
Looking for investors to support your business venture? Drop Studio’s Investor Accelerator is the perfect tool for reaching out and starting conversations with potential investors. With expert advice and guidance, you can rest assured that we’ll be there every step of the way. Connecting you with a dedicated campaign manager, they will provide guidance on:
-Mapping out your investor network
We further support you with a workshop helping you discover potential investors through thorough research into:
-Number and values of shares in high-quality growth UK businesses
-Buzzword/ sectors- Find who has invested in companies within certain sectors
-Competitors- Find who has invested in your competitors
So, what are you waiting for? Click this link to learn more about our Investor Accelerator: