The availability of capital for startups is at an all-time high. Finding investors used to be a must-do activity for any startup looking to scale.
That landscape has changed.
Now, many capital groups, investors, crowdfunding platforms, and alternative funders are seeking startups.
There are a huge amount of places and methods investors use to browse and filter startups. Our fund uses these to great effect and several of our current investments have come from using startup databases to filter leads that seemed to be good fits for our model.
Here are a few essential tools your company should use in order to be easily found and approached by investors:
Onepager.vc
What it is: Onepager is a collection of startups that share their information in a landing page-like format. Investors can access a new list of startups every month and filter those startups using the data points that are important to them.
Why it works: Onepager has a large email list of investors that are notified every time a new list of startups is sent out. This is a dream come true for founders because they can create a single page, and that page is then sent out into the larger funding world and is seen by a bunch of different kinds of investors. Those investors can then reach out to the startups directly through the platform.
What to do about it: Create an account and see how it goes for a month or two. There is not a whole lot to lose but uploading your startup’s data and letting some funders look through it could prove to be your entryway into making a great deal. If you don’t get any traction, maybe it’s just not the right platform for you. Either way, it’s worth a try.
Any Crowdfunding Platform
What it is: Crowdfunding is just a method of raising money by getting investment of many, many individuals, instead of just a few funders. A crowdfunding platform is a website that allows you to create a social media-like profile for your company and allows people to browse and find your startup. If presented well, they may just become an investor.
Why it works: Crowdfunding platforms are often useful in ways that startups do not originally intend. They can help a startup solidify and create killer marketing material to get investors excited. These lessons can be used to great effect in the more traditional funding world. It is also a place to put your startup where larger investors can find you, along with everyday crowdfunders. Just because a business is on a crowdfunding platform, does not mean that a big investor can reach out and write a fat check.
What to do about it: Find a crowdfunding platform that makes sense for your business and jump right in. Currently, this is my favorite way for startups to raise money because they can raise large amounts amount while simultaneously advertising for their business. If successful, they raise money without giving up board seats, and they create an army of micro investors that serve as wonderful advocates and ambassadors for the company. If your startup can pull off a successful crowdfunding raise, it’s pretty much a home run.
Airtable Startup Databases
What it is: Airtable startup databases are essentially a group of excel spreadsheets that are populated with startups of a certain niche, location, or another identifying factor. They exist in a number of different spaces for a variety of reasons. They are generally attached to incubators or certain startup niches but not always. Investors use these databases to sort through startups and reach out directly to opportunities they feel may be a good fit.
Why it works: Well, it usually doesn’t. Investors rarely find opportunities this way because it takes a decent amount of time and effort for them to source deals using these spreadsheets. However, because it is so low effort for the startups, it is totally worth it to give it a try. Most databases have a 2-minute form you can fill out to be included on the list.
What to do about it: Google ‘airtable’ followed by your niche of business or anything else that makes you unique. Chances are with a bit of research you can stumble onto a few lists that are a good fit for you. If you are lucky, an investor may just find your company interesting enough to dig in and reach out. This is a rare win, but so low effort it is always worth a few minutes.
Startup Support Organization’s Email Lists
What is it: Much like the airtable lists above, many groups collect and send out lists of startups they come across to their network of funders. Our fund does this with almost all the startups we have to say no to. Just because they are not a fit for us, doesn’t mean that they are not a fit for others.
Why it works: This is by far the easiest way to get in touch with investors. Almost every accelerator, VC group, alternative investor, or startup support agency has an email list of investors that they reach out to with potential deals. It also has a decent conversation rate, especially if you can get on the list of an organization that is well trusted in the funding world.
What to do about it: Research the top startup support organizations in your area, or niche. Introduce yourself and directly ask if they have an investor email list. Keep in mind they are always looking for startups to include on their lists. If your company is legitimate and worthy of investment, there is no reason for you to not be included.
Entre
What it is: Entre is kind of like LinkedIn but just for the startup community. It has a fairly small user base currently, but that user base is highly saturated with people in and around the funding world.
Why it works: Because it is so small, users are actively seeking new accounts. This creates an environment that makes it easy to get your business in front of new people without the effort of other social platforms.
What to do about it: Just create an account and get busy.
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The more work you do to be a part of the conversation and community, the more dominoes will start to fall. If your business is solid, you will soon have a calendar filled with pitches to people who are actually interested in you, not just tolerating another call.
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