10 Sure Shot Ways To Attract Investors

You might have a fantastic and out-of-the-box idea with the potential to disrupt and eventually benefit society at large. However, only having a brilliant idea is not enough. If your Startup is your dream project, you need to execute and scale your venture, eventually making it a decent size and structure. You need funds and working capital to survive and sustain your venture in the cutthroat business arena and learn how to invest startups in India.

Any venture, irrespective of its size and magnitude, needs working capital funds to run and long-term capital to grow. Although it might look scary, many ventures fail in the long run due to a lack of funds to survive and sustain themselves. Taking a loan from a bank can be a very expensive proposition, and instead of that, you reach out to investors. The next pertinent question is how to attract potential investors?

Through this article, you can figure out ways to attract investors.

How to Attract Potential Investors?

Firstly you need to know and gauge the mindset of these investors, how they think, how they evaluate a potential Startup, etc. You will be surprised to know that Startup investors always look for potential and promising Startups to invest in. A company that has the potential to scale multiple heights and exponential profits. To tap the potential and correct investor, you need to know How to attract potential investors.

Here are some of the ways to attract and reach out potential investors

• Knowing and understanding a specific sector or industry thoroughly
• Building a strong leadership that is strong enough to handle any constraints
• The potential to scale the Startup to its zenith
• Solid financial projections and matrix

How to Attract Investors for Startup in India?

The Indian Startup ecosystem grew leaps and bounds over the years from a not-so-progressive mindset to being the facilitator of Startups through several initiatives, incubation, and fundraising. However, it is also not easy to get the mindshare of investors in each funding round. Also, budding entrepreneurs and Startup founders like you need to spill out unique ideas and propositions to keep investors interested in your Startup venture. how to get investors for startup.

The next question thus far is how to get investors for startup.

India’s Startup landscape and ecosystem have become much easier and friendlier, requiring less time to transact and do business.

Here are some fundraising tips and tips to attract investors for your Startup.

1. Curating a potential list of investors to share the idea with: It is always advisable to pen down some big names in the Startup industry whom you wish to meet and propose your Startup idea.

2. Improving your networking skills: Have you imagined that if an industry stalwart refers your Startup to a potential investor, the propensity to attract funds from that investor increases? Thus it would help if you never ignored the power of networking.

3. Convincing investors why to invest: Investors are a tough lot to get. You need to reach out to the right investor who is keen to invest. You need to convince investors of the long-term vision, enthusiasm, and passion behind running the Startup. The fund you seek from investors will keep your Startup going.

What to Offer Investors in Return?

The most highlighting factor while approaching investors for funds is that you do not have to repay each month, as the capital injected into your Startup is not a loan. Investors pump funds into your Startup and take an equity stake in your Startup. These investors then become an advisor to your business. Their advice is indeed valuable and worthy as you scale your venture. In this case, the next question is: What to offer investors in return?

Investors look for the following in any promising Startup

• A higher and positive gross margin
• A decent and healthy top-line growth or revenue on a Year-on-Year (YoY) basis.
• A higher and positive bottom line or net income.
• Better and healthy customer acquisition on a regular basis.