How to find investors in the UK
Investors tend to be a little more complex than we realize. There are a lot of factors to consider when looking for the right investor. Your investor should be someone who shares your vision, but also can offer the necessary capital to turn your vision into a successful project. We will look at how to find investors in the UK.
In this blog, we will explore:
- Why it’s important to find the right investor in the UK
- Types of investors in the UK
- How to find UK investors
- How to choose the right investor UK
Why it’s important to find the right investor in UK
Investors play an important part in a business’s success and growth. As a result, it’s critical for businesses to establish good and honest relationships with investors and to find investors who share the same goals as you and understand your business.
Types of investors
Understanding the different sorts of investors in the UK available makes the process of finding investors much easier and faster. There are hands-on investors. These investors can provide you with guidance and advice and teach you the ins and outs of the business world. There are silent investors who solely just invest their money and leave you in control of everything and anything in the company.
But to dive a little deeper – most startup companies find private equity investors, angel investors, and venture capitalist investors to help them get their company off the ground.
- Private equity investors are private individuals who fund your idea or startup in exchange for a share of the profits or a stake in the company
- Venture capitalists invest in specific industries that are expected to grow rapidly. They have the business know-how and expertise to help, as well as marketing and other contacts
- Angel investors are individuals who have a like-minded interest in your startup and may want to become more involved in its operations. They are comparable to venture capitalists as they can provide business advice and expertise but on a much smaller
- Crowdfunding is a way to raise funds for a specific cause or project by asking a variety of people to donate money, mostly incremental, and usually during a relatively short period of time, such as a few months.
- Equity investors will invest money in return for shares, or a small stake in your business or venture. This type of crowdfunding could work best for growth-focused companies in areas where there is potential for return. Good platforms for these types of investments are Crowdcube and Seedrs
How to find investors in the UK
- Online Fundraising Platforms
There are a number of platforms in the UK you can look into for funding such as:
It’s all about the visibility of your company in fundraising and getting seen by the proper investors. Attending events is a fantastic approach to do so. To make meetings more productive and worthwhile, try to find out who will be attending the event ahead of time. One of the events hosted around the UK to meet investors is Paradigm Talks, Check them out.
- Social Media
If you’re a startup or an entrepreneur trying to test the market, acquire traction, and attract investors, social media is a great place to start. It makes it simple to be discovered and remains one of the most cost-effective ways to communicate with others about your business.
Here are the most popular social media channels, as well as how to use them:
- LinkedIn can be used to find and introduce yourself to quality investors and is also one of the best and more professional ways to provide social proof.
- Facebook can be used to build lasting relationships after you have met up with investors once or twice. It is vital to establish a relationship in order to foster trust.
- Apply to accelerators
Entrepreneurs starting a business can apply to startup accelerator programs at any time. If you’re chosen, you’ll likely receive a small stipend to help you continue working on your project, as well as introductions to other investors, business guidance, and assistance with future fundraising rounds.
How to choose the right investor
While there are several ways to raise funding for your firm, none are as profitable as securing legitimate investors. Finding the appropriate investors for your company is key.
Here are some tips to help you choose the right investor in the UK.
- Identify your requirements
The first step is to know what exactly you require from the investor. Make a list of the key qualities you’re searching for in an investor and make sure you’re evaluating possible investors based on the qualities you have listed. Enquire about their expected role and how they expect the working relationship to progress in the future.
- Make sure they are familiar with the industry
It’s important to target investors who are familiar with the industry that your startup is in, this will help avoid problems and confusion. You’ll want to make sure they’re aware of the industry’s potential hazards and hurdles so they’re not surprised if you run into problems. They won’t be able to understand your plans if they don’t understand your market.
- Research, Research and more research
It may appear to an entrepreneur seeking an investment that the investors wield complete authority. However, you must do your research on investors before accepting money from them. At Drop Studio we have the necessary experience and tools to help you find the right investor.
You should research if they prefer assisting their portfolio companies if you can approach them for advice and assistance, and how frequently you may contact them. You can also do some research on what they’ve done in the past to assist their portfolio businesses, how frequently they anticipate receiving updates, and what information they expect to receive after investing.
It’s critical to understand the investor’s preferred level of involvement in order to avoid disappointments caused by either party being overly or underly active.
We hope you enjoyed our blog about how to find investors and raise money. Finding the right investor or financing for your business is a process that takes time and patience, but the benefits are worth it in the end. Be sure to always remember that this process is not just a single event but rather an ongoing journey that you must take on daily in order to be successful. If you are looking to start a business and are interested in finding investors, please reach out to us at drop.studio.