How To Attract Investors For Your Startup?


Startup! is a relatively less recognized subject (especially in India) if we go back ten years from now. Earlier, only a few parents would dare talk with their children about Startup as a career and encourage them to develop entrepreneurship skills.

However, in the recent 4-5 years, the innovative culture in India has provided a positive push to the idea of Startup.

A number of crypto and blockchain pr agencies have also risen to support these startups and help them reach the top.

As per the ‘Economic Survey of India’ (2022),14,000 startups have been recognized in India, which means an increase of 20 times in the past five years. India has been able to develop the Startup Ecosystem in the recent 4-5 years across the country. It’s a great step towards achieving the goal of Aatma Nirbhar Bharat.

Nevertheless, ‘It’s easier said than done’. We can’t deny that with Startup, there comes a plethora of risks and challenges. 90% of Startups fail within their first five years due to many reasons. Investors play a crucial role in establishing the business, and failing to get investments is one of the primary reasons for the collapse of Startups.

Dear budding Entrepreneurs, do you seek to lure investors to your Startup? Here are the 8 imperative Masterstrokes to attract investors for your Startup:

1. Convince Yourself First

If your mind and heart give thumbs up, then only go ahead. There’s a basic rule of confidence. If you are confident, your investor is confident too.

If you doubt your business idea, goals, outcomes, sustainability and success, then the investor will never show confidence in you. Hence, take enough time to develop a vision and strategy that convinces you first. Trust your business. Your love and passion for the company will accomplish 50% of the task. It will drive your investors’ interest in you and your business.

2. Profitability

To take out a single penny from the investors’ pocket is a hard nut to crack.

It’s pretty simple! Why would investors invest in your business if they don’t get luring benefits/profits? Never try to turn things around. Don’t forget your investor is smarter than you. He has a big queue of startups to invest in.

The investor should understand your business.

“Never invest in a business you cannot understand”- Warren Buffet

Be transparent to them and define the business objective well. Profit is the topmost priority for any investor. Wisely plan what you can offer to your investors. Give detailing of the investors’ immediate and future returns. The benefits have to be:

(a) Clear
(b) Understandable
(c) Relatable.

3. Scalability

“Dream Big, Work Hard”- Abdul Kalam

Did you happen to watch the ‘Shark Tank India’, an Indian TV show wherein budding entrepreneurs across India attract investors for their startups?

In that show, many investors liked the idea and budding entrepreneurs’ passion but withdrew from investing in the business since the Startup didn’t have any scope for scalability. If the company cannot stretch its wings in the future, it will never flourish. Sooner or later, it will fall under 90% of failed startups.

Pitch your business idea with a full-fledged ‘Business Scalable Model’. Multiply your outreach, make sure your business evolves over the years and builds good customer relationships.

4. Uniqueness

“Creativity is seeing what everyone has seen, and thinking that no one else has thought.”- Albert Einstein

Be Original! Refrain from copying others’ business models. Don’t be in a hurry to start a business until you spend hours and months brainstorming. Take your time, and try to bring innovations to your business. To remain in the competition, you should have something unique and attractive to serve your buyers. The USP of your product/service will stand your business apart from others.

5. Problem Solving

There’s a long list of problems in the world. If you have identified the real problem and can solve that problem, you have found the investors’ nerve. Only the real problem gives birth to a business. Just introducing another company in the market with the sole motto to earn without considering the problem will never be able to draw investments for your Startup.

Randomly picking any problem will not lead to a business. Conduct research and check the feasibility of the business.

6. Presentation

Congratulations if you have made it to the presentation. Grab that golden opportunity to present your business plan. You are not the only one to reach out to potential investors. A mediocre presentation will wipe you out of the race.

Prepare yourself; anticipate all the questions that the investors can ask.

Try to showcase the best of the work you have done so far. Please keep it simple yet exciting. Collect testimony of your loyal customers (in the form of audio, video, written etc.) and show it to your investors. It will authenticate your work. No matter if you have not been able to reach enormous numbers so far. Be confident in your product/service quality.

7. Online Presence

Adaptability is a prerequisite to persuading investors. We have entered a new working culture post-Covid. The digital world opens many more opportunities to build your brand and credibility.

The Internet is an easily accessible and handy source of information. Any investor will have a thorough online check of you. Explore all social networking sites and regularly update them with quality, relevant and trending content. Ask for reviews from your customers and share them on digital platforms.

8. Dedicated Team

“Great things in business are never done by one person, they are done by a team of people”- Steve Jobs

You may not have a big team initially, but you can build a significant team. Identify people who are experts in their relevant field, result-oriented, motivated, cooperative, organized, supportive and united. Convince them to be part of your startups. Your small yet proficient team can dare to bring a major difference.

This teamwork will be your greatest strength in attracting investors. After all, the investors deal with the people (team). A good team will build faith among the investor to invest in you.

A BIG Business Starts Small!

No company stands in a day. Every successful business demands time and patience. Now that you have gone through the 8 masterstrokes to attract your Startup’s investors, don’t just sit. You need to implement them as well.

The current statistics are in the favor of Startups. Find your potential investors. The investors are sitting out there for you only. They are also waiting for the good and the right opportunity.

You might not get success in the very first place, but eventually, hard work pays off.

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