Imagine if you are an entrepreneur with a unique business idea that can be converted into an intuitive mobile or web app if executed properly. But you are struggling with a lack of financial resources to back you up for creating an interactive prototype.
The real challenge faced by the majority of startup geeks at this point is to find the seed funding for their prototype. Of course, it’s a tough one but can be achieved if you move ahead with a well-planned policy. If you are also one of those who is stressed to get the seed funding, then take a look at these seven tips to find angel investors for the same.
1. Demonstrate Proof Of Concept
The very first step to getting seed funding is to show the proof of concept or a prototype which will make it easier for you to get investors put in money in your project. It’s the process of validating the fact that your concept or idea has the potential for real-world application. In order to build a prototype, you need some money and time.
The sole motive of a proof of concept is to check the viability of your idea. It will allow potential investors to actually see how your idea will work and they will feel much more confident about investing in the same. Basically, it’s the process of determining whether an idea can be converted into a reality.
2. Show That You’re Committed
A potential investor will surely want to cross-check the knowledge you have about your idea. You must be well aware of each and every aspect related to your concept and be prepared to answer questions.
In order to practice for the same, you can ask your peers or family members to ask you multiple questions related to the idea. Also, you can research online and find what could be the possible questions that can be raised for a similar idea. Show that you are completely committed to building the prototype and ultimately launching a functional product in the market.
3. Explore Angel Investor Networks
It’s advisable to explore different angel investor networks in order to get the seed funding for your prototype. More and more investors form groups to investment groups where they can share their experience, collaborate and invest in potential startups and fund their ideas. There are several investment networks such as public angel networks, private angel networks/angel clubs, angel funds, online angel networks, etc.
You can do extensive market research and find a network that seems reliable to you. You can gather reviews about potential networks so that the process of choosing one among many becomes easier for you.
4. Create A Robust Web Presence On Sites Investors Mostly Visit
You can create an account and establish your business identity on crowdfunding websites such as Fundable, IndieGoGo, RocketHub, Kickstarter, etc. Potential investors do visit these sites frequently to discover unique concepts to which they can contribute. Also, you can build a demo video of your idea to get highlighted among investors.
5. Search For Similar Ideas Which Have Received Funding Of Late
To participate in meetups and fundraising events is a good idea to connect with investors. But along with that you can explore the market and look for investors who have funded ideas similar to yours in the recent past. Find out the major competitors for those investors and contact them to get the seed funding.
6. Prepare A Brief Yet Effective Pitch
Investors are the key decision makers and they won’t spend their whole day in listening to your idea. This is why it’s essential for you to create a brief yet effective pitch to present your idea in front of investors.
Basically, craft a powerful, concise, and easy to share pitch which investors can understand easily and in case they don’t find it appropriate at least they can share it in their network. You are the only individual who knows is familiar with all the ins and outs of your idea. So, it’s better to prepare a pitch all by yourself. And make sure to keep it short and simple.
7. Don’t Get Dishearten With A “No”
It’s obvious that you will get a denial when contacting several investors. Out of 100 to which you’ve pitched 90 will say “no”. Also, the other 8 may say “might be” and finally you get two who will be ready. It’s not at all easy to raise funds so you have to be patient and don’t lose your cool.
Take time to learn things and refine your idea and pitch so that to get a definite “yes” in the future. You have to understand the whole process and maybe you need to set up multiple meetings and follow-ups in order to get the investor who will be happily taking the risk with you and accompany you in your journey to become a successful entrepreneur.
Anubhuti Shrivastava is a content crafter at Arkenea and Benchpoint. She is passionate about writing articles on topics related to design and the software development industry.