When starting a small business, you most likely will need to gain some initial funds to get it off the ground. Unfortunately, raising money is one of, if not the most, hardest parts of starting a company.
There are multiple ways to find these investors and get them on board. Here are the top 5:
- Family and friends – the first outlet you utilize to find your initial investors, the easiest way.
- Angel groups – people who deal with their own personal money so they are more prone to invest if you connect with them personally. You could do so perhaps by offering them an advisory role in your company or a way to work alongside the business.
- Small business development centers – through these you can get connected with investor lists or have the centers recommend prospect investors.
- Economic development entities – generally have 3 categories: public (local government), private (non-profits and business groups), or a public-private partnership.
- Crowfunding – the only way to reach investors not only in your area but worldwide. You can expose yourself to thousands of potential investors online.
Online investment crowdfunding sites such as EquityNet.com are the new future of venture capitalist firms.
See more details at https://www.equitynet.com/blog/5-ways-for-small-businesses-to-find-angel-investors/ – post by Adam Vanderbush