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How to Attract More Investors to Your Startup


Funding your startup is never an easy task. Luckily, there are many different ways you can do this and having investors provide you with some cash is one of them. Still, you’ll be able to attract investors only if you put enough effort into it. In order to gain some attention from investors, you’ll have to make your business stand out from the crowd and show enough potential. With this in mind, we have come up with three tips that will help you find the right people to invest in your startup. 1

Invest your own assets

The only way to persuade someone to invest money in your startup is to show them that you’re not afraid to do so as well. Therefore, if you want to keep investors interested, you need to invest your personal assets into your business and show them that you’re ready to take risks in order to see your startup succeed. In fact, when meeting with potential investors, chances are they will ask to see how much you or your business partner/s have invested in the startup so far. Of course, investing everything you have in your startup is never a good idea and you’ll have to separate your personal and business finances. Still, a simple cash injection from time to time might just give your business what it needs and show potential investors that your business is worth investing in. Not to mention that by doing this, you’ll show level-headedness, which is a quality investors tend to look for in rookie entrepreneurs.

Show them why they should invest in you

You can’t expect someone to be ready to invest in your startup just because they like your idea. That’s why you need to have something to show when meeting potential investors. The best way to ensure there’s something to brag about on the meeting is to tackle a few simple projects. Positive results with projects like this will show them that your startup is able to do the same on a greater scale, if provided with enough money. If you’re still not sure about it, just take a look at it this way – if you’re looking for a new house to buy, you’ll always want to see the model in order to make sure it’s exactly what you’ve been looking for. The same rule applies to business and it’s up to you to prepare a model for potential investors to take a look at. 2

Deal with your finances

There’s no need to say that you’ll struggle to find investors if your finances aren’t that great. If you want them to be ready to entrust you with their money, you simply have to show them that you’re capable of handling it in the right way. A great way to start cleaning your books is to take a closer look at your taxes. It’s always recommended that you hire experts near you to help you out. For example, if you’re looking for a tax accountant in Sydney, there are plenty of local experts you can turn to. Furthermore, dealing with clients who haven’t paid all of their debts to you is also recommended. In most cases, a polite reminder is all that it takes it get all the money you’re owed. Still, if that fails, you can think about having a professional debt collector deal with it for you. This way, investors will be able to see that you’re not going to let others stand in your way.

The bottom line

By following all of these tips you’ll be more likely to attract more investors to your startup. Still, bear in mind that you should never go after popular investors just because you want to collect a status symbol. Make sure you go through every deal you’ve been offered and find the right one for your startup.

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