You already have the business idea. Maybe you have started
your company or made your first sales with your startup. You
are in the growth phase and want the perfect start for your
new business. One of the major hurdles you are likely to
encounter is a lack of capital. That’s why it’s essential to
learn how you can raise capital for your business. Connecting
with investors is one of the best ways to go about this.
Where can I connect with top investors? And what role do the
so-called stages – i.e., growth phases – which your startup is
currently in play here? In this article, we would like to help
you know how to find investors.
Different Stages of Funding
Venture capital investors finance startups in the early stages
and accompany them in developing, growing, and expanding their
The development of a startup into a
"mature" company is typically divided into four
different phases, of which the first three (seed stage, early
stage, and growth stage) are financed by venture capital.
The fourth phase (Later Stage), at the latest, is aimed at the
exit of the venture capital investors. Various financing
rounds correspond to the development phases, which differ
according to the number and type of investors and the
What Is Seed Round Funding?
Seed round funding or financing is an investment usually done
during the initial stages of a company’s growth. In contrast
to conventional investors and types of financing, venture
capital investors get involved in a very early phase of the
young company (startups) and support the founders’ right from
the start of the company.
The classic investors in the seed round funding stage are
primarily friends, family, or acquaintances. If the founders
don’t have enough funds, either from their funds or from
friends and family, so-called business angels or top investors
often give the young company financial support and stand by
them as advisors. Other sources of funding are local
incubators or state prizes and subsidies.
In seed round funding, the founders’ focus is primarily on
implementing their idea and the concept or product
development. It’s about analyzing the marketability of the
concept or product and converting your own idea into a
convincing and viable business plan. You should connect with
investors to raise capital to help your business grow.
How to Connect With Top Investors?
Here is how to find investors for your startup:
Prepare investor search: Which investor suits you?
Not every type of investor is necessarily suitable for your
company. Many invest only in the later growth stages of
companies, while others enter the company during the seed
round funding stage. Here, you should have an overview of the
types of investors to know which ones to look for.
Some of the popular types of investors include:
Incubators - Institutions that accompany entrepreneurs to
Business angel- An experienced entrepreneur who owns
shares in the company
Company builder- Investors who not only give money but
Venture capital companies- Financing existing startups
with equity and mezzanine capital, aiming for a successful
Other criteria for choosing an investor:
How much capital do you need: for some investors, a
startup is either too small or too big!
Portfolio: In which companies do the investor hold shares?
Track record: What references and successes can the
Geographic focus: In which countries is the donor
Sector focus: Which sectors is the investment focused on?
- How serious is the investor?
Find Investors: The Best Ways
Common ways for startups to find investors include:
Cold acquisition: At the beginning, there
is the targeted research for possible investors, then the
approach takes place.
Professional investor brokers and brokerage portals are
other ways to find investors.
Visiting events: Here, you can get to
know the scene, address investors in a targeted manner or
participate in pitches.
Participation in competitions:
Prize money and attention in the media beckon. The
startups not on the winners’ podium also benefit because
many competitions offer to coach, feedback on the business
idea or business plan, and the opportunity to make
Personal contacts and recommendations:
good contacts with donors are essential. Therefore,
startups invest time in building up a good network.
Pitching events, founders’ get-togethers, and conferences are
events where founders can find investors. At the pitching
event, startups present their concept in short keynote
Convince the Investor: Pitch Deck and Financial Plan
Finding investors is one thing. Once you have made contact
with the investor, the moment of truth comes: the investor
presentation for your business idea.
Inspire with a pitch deck or one-pager, convince with the
business plan. Important: The investor, as the addressee of
the business plan, is primarily interested in the possible
return and the chances of a lucrative exit.
9 Mistakes to Avoid When Looking For Investors
The following mistakes are deadly when trying to find
Proceed unsystematically: look for investors randomly or
Pitch deck spamming: Indiscriminate sending of investor
presentations instead of personal contact and good
- Respond too late to investor inquiries.
- Don’t attend events.
Unprofessional documents: Pitch deck & Co are not very
- Sales planning is unrealistic.
- The budget is incomplete.
- Lack of harmony in the founding team.
- View unrealistic ratings.
Successful startups, on the other hand, choose the right type
of investor, address them specifically, present the unique
selling proposition (USP) of the business idea perfectly and
create a win-win situation when the deal is closed.
The Use of Digital Platforms to Connect With Top Investors
The digital space has created an avenue where you can connect
with millions of people out there. You can utilize social
networking platforms like LinkedIn to pitch your idea and
connect with top investors. There are also websites
specifically built for this.
AngelMatch is an excellent platform connecting you with
thousands of top investors in seconds. With over 90,000
venture capitalists and business angels in one place, the
platform helps you save time and frees you from the hassle of
looking for investors. AngelMatch has a vast database that is
updated regularly, where you will find investors from various
sectors and top VC funds like Benchmark, Andreessen Horowitz,
and Sequoia. The platform saves you time because you can
filter your searches according to your industry and find the
right investor for your startup.
Visit AngelMatch now and connect with
top investors in your sector.