There are different ways that any new company or app startup seeks investment from viable investors. If you’re looking for tech startup investors, you’ve come to the right place. Aspiring entrepreneurs and innovators all over the world are turning to outside investors to help fund their tech startups. But where can you find tech startup investors? The answer is simple: you can find them everywhere. Angel investors and venture capitalists are some of the most common types of tech startup investors. Angel investors are interested in investing in early-stage companies. Unlike venture capital firms, angel investors don’t typically take an equity stake in the company. Instead, they provide capital in exchange for a share of the future profits. Venture capitalists, on the other hand, invest money from their firms or funds into startups in exchange for control or ownership. Both types of investors can provide valuable guidance and capital to help tech startups grow and succeed. Networking is also a great way to find tech startup investors. Attend local networking events and conferences to meet other entrepreneurs and investors. You can also use online resources to connect with venture capitalists and angel investors. Another way to find tech startup investors is through crowdfunding. Crowdfunding is a great way to get the word out about your tech startup and attract investors. Just remember that crowdfunding is not always the best way to find tech startup investors, as it can be difficult to get enough funding for the entire project. Finally, you can use accelerator programs to find tech startup investors. Accelerator programs are structured programs designed to help tech startups grow rapidly. They can also be a great way to connect with potential investors who are interested in investing in tech startups.
How to Pitch Your Business App Idea to Angel Investors?
- Create a financial plan – Before you start looking for the right Angel investors, you must first clarify how much capital is required for your business case. To do this, you determine material and human resources and list them in a financial plan. In addition, you should build in enough buffers to keep your company afloat in difficult situations. A well-researched financial plan also shows investors your business skills and that you have already analyzed the market.
- Pitch a business idea
The next step is to find suitable investors and convince them of your idea. For this you need a solid presentation that describes your business idea and shows the potential of your business. You can ideally build up the different types of each other in order to constantly provide potential investors with the necessary information:
- One Pager: As the name suggests, the One Pager includes a page that lists the most important data about your company. It is therefore best suited for the first impression, where future partners are already given an overview.
- Pitch Deck: The Pitch Deck is a lot more extensive. The presentation tells about your startup over several pages (usually 10 to 15), reveals the background of the idea and shows potential.
- Business plan: No company can start without a business plan. It describes the business idea down to the smallest detail and also presents the financial plan. With the business plan, investors receive a comprehensive overview, on the basis of which the decision for or against an investment is made.
- Negotiate terms – If Angel investors have agreed to support your company, it is ultimately a matter of negotiating the terms of the partnership. At this point, startups should seek help from a consultant. It gets tricky, especially when selling shares in a company, and young entrepreneurs should check every step very carefully.
Why To Go For Revenue Based Financing?
Have you started a business and are looking for ways to finance it? Are you confused about whether to go for revenue-based financing or angel investing?
- Specifically, if your startups have blurry projections, RBF can be a better option than angel investing. It’s a form of financing where the investor takes a share of the company’s future revenues over a period of time. This type of financing is ideal when there is uncertainty about how much money a business can make in the near future.
- The other advantage of RBF is that it is a much less risky option than angel investments. Since the startup does not have to give away any equity, there is no risk of losing control of the company. Also, the payback is linked to the company’s revenue and not to a fixed timeline, so if the company’s revenue is low, the payback can be postponed. This gives more flexibility to the startup to focus on growth rather than worry about the payback amount.
Summary – Revenue Based Financing from Velocity is an awesome way to get the funding you need without giving away equity. It’s a great option for businesses that are looking to grow without giving up any ownership. With this platform, you get a simple and flexible financing solution tailored to meet your specific needs. The loan amount you can receive is based on your business’s annualized revenue, so the more successful you are, the more you can borrow. Unlike other types of financing, revenue based financing does not require any collateral or personal guarantees. This makes the process much simpler.