Know everything about investors and the tactics now to attract them; the 4 kinds of investors you need to look-in. | Startup Bazaar
how to attract investors

Know everything about investors and the tactics now to attract them; the 4 kinds of investors you need to look-in.

“Investors do not invest in the businesses they do not find scalable”

Let’s have a close look on who are these investors!

A perfect business is succeeded by its accessibility and maximum reach.

Building a brand, manufacturing the company products and services, connecting with your specific target market, are these enough for your maintenance?

If I tell you, it’s not; no entrepreneur is financially independent at the initiation of his startup. We have examples of businessmen putting up their whole life savings into brand positioning and manufacturing. But, these savings will not support the business as a whole; as soon as your finances come to an end, the product manufacturing will deteriorate with time, and you may pave degradation in your business.

What has to be your next key approach?

Assemble your understanding of investors and investments. Knowing accurately, who to ask for investments is your first stage. Although, before you step in the business sector, the entrepreneurs might recognize the importance of different kinds of investors and their investments.

Investor defines themselves as the financially well-built and secured units, whether these are the businessmen, an organization, loan lenders who are prescribed to put in their working capitals and assets into a newly or a built brand in the market, which assure the investors for considerable and eminent monetary pay backs in the future.

The acknowledgement here is the investors are tend to invest their possessed funds and finances either sustaining their assurance and conviction in the viewpoint and agony of the entrepreneur or the exploding business they have a clear vision and mission of.

“Investing is laying out money now to get more money back in the future”, hence, in addition to what we discussed earlier it expounds that the investors are engaged enough in your idea, if they are believed to surely attain elevated financial success with the business, they are trusting in.

What are the different types of investors?

  • Angel Investors- these are the non-public well to-do moneyed investors. The principal ground investment plan of these investors is to reinforce and lend the small entrepreneurs and their startups, bartering with the dilution of equity from the other side. Irrespective of the fact, whether these angels own a business entity they have to dig in with their own capital when investing. In this case, the entrepreneurs and their presentation is judged accordingly, where he should also be extra cognizant of the liquidation of the equity and the number of rounds he will have to raise in future too.
  • Venture Capitalists- in the easiest way to explain venture capitalist is an individual or an organization, who are ready to invest in a business artifact either or their initiation or enlargement. The time period for a business to be explosive in the target market, venture capitalist investments are the easiest to ask for. In-exchange they are believed to acquire your equity stake. Here, the organization invests, not a sole investor.
  • Personal Investors- putting in our own money in an entity without predicting the future result is something termed as the most insecure and precarious. Here, comes the personal investors who are opinioned not to invest in a small venture, but to invest where the multiplication and escalation is surely defined and capable. Also, each time you will hear about these personal investors, they are cited as the independent ones and not an organization for sure.
  • P2P Lenders- the peer to peer lending is an operation that links the needful entrepreneurs to the prepared and inclined moneylenders. In a layman’s language it is procuring loan ends straight up from the individuals, unaccompanied by the task of a buffer. These may be also defined as the crowd investments.


How to attract these investors?

From beginning with your startup to keep it going through, finding investments could be considered as lone a demanding ask; that every business and the entrepreneur has to go through. Investors are not the scholars, so the risk for them is as proportional to what you had in the start, and is still there.

Hence, your presentation skills of how you will make sure the investors understand your idea, the problem you are solving, your company product, the target audience, and the availability is the utmost step in the same.

There is a certain time for doing an act, and when you find that suitableness when you are ready to pitch in front of your desired investors, go for it. But, take a lot of prime selections before you do so, a founder solemnly cannot excite the investors, nor they will understand your  business plan.

Take your co-founders along, take the ones who are equally important as you in building your brand, and catch their attention at each point, and query they arouse.

First of the many, detail your business results you have collated and attained till the present time. Elucidate the issue you are resolving, and how much percent of the population is interested and engaged in your utilities.

Prior to the pitch, document your revenue model in a way, which is penetrable  and presentable. Ponder over distinguishing your facility as a product for the public, or a service.

Investors are drawing upon investing their own money in your belief, and obviously they had to have their interrogations apart from you and your product. Your sales, real time monitor them per annum and per month.

You as an entrepreneur cannot afford to lose over this, be coherent and logical about your gross margins and net margins, and make the investors understand it a wholesome. Make them believe in you, and be transparent enough either it is your valuation or the amount you are asking for.

Dawdle each time you prepare for your compelling and convincing pitch desk. Time scale your words so you do not miss any of your objectives.

Remember finances are objectified, you should be voracious when demanding enlightened direction, tips and pointers from these investors, as they have built their brands, and your pitch is not the opening one for them. They are the businessmen you prefer to be one day.

So, go build your product brand and find the correct investors who will show faith in your idea.


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