I’m often asked where startups should look for funding. There are many sources.
First, start with your family and friends, as they already know you and believe in you.
Second, expand the circle to include current and previous coworkers.
If accelerators are appropriate for your deal, then consider those not only in your geographical area but also in your sector. Most accelerators take companies from across the country. Many are now offering funding of $150K or more.
Third, look for a local network of angel investors.
Fourth, ask around for family office investors in your area. These are high networth individuals who have organized their startup investments into a formal process.
Finally, approach venture capital, but only if you have a deal that fits the VC funding model, which looks for a 10X return, a scalable business model, strong growth and an experienced team.
There are literally tens of thousands of investors in the startup world today. The key is to gain an introduction, make a pitch, and then follow up to close.
In summary, it’s best to start with those you know and use their funding to show support and momentum to those further out in your network.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
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Copyright (c) 2020, Hall Martin and investorconnect.org. All rights reserved.
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.