How do I find investors for a startup?

Name: Finding Investors | Ep 15
Description: The video discusses reaching out to investor leads after defining an investor avatar. It emphasizes staying focused and adding value while seeking warm investor leads.

Short answer

I would find startup investors by identifying people who already invest in your type of business, then building relationships around a focused opportunity. Not every wealthy person is a suitable startup investor. I want a smaller group of relevant investors who understand the industry. Your job is to make it easy for the right people to understand what you're building, why you're different, and why you're worth getting to know.

Checklist

Identify investors who already consider early-stage businesses.
Focus on investors with experience in your industry.
Research each investor's preferred sectors and investment approach.
Develop a short explanation of the problem your startup solves.
Demonstrate the experience and capabilities of your founding team.
Build relationships through relevant introductions and educational conversations.
Prepare materials that explain your business without exaggerating its prospects.
Record investor feedback and improve your positioning.

From my talks

"The best way to find the person that you're targeting is to have them find you when they're in need of your solution."

Choke Points Webinar

In my Choke Points webinar, I explained how building authority within a specialized niche can attract the right relationships. One example involved a family office that acquired a highly patented street-sweeper business. Its protected intellectual property created a strong strategic position in a narrow market.

That was the acquisition of an established business. It shows why I look for a competitive advantage a company can prove.

For a startup founder, I would focus on communicating that advantage clearly and getting in front of investors who understand its value.

What to do next

Define your startup's investment category and ideal investor profile.
Build a targeted list of investors with relevant experience.
Test your positioning through conversations and improve it based on feedback.

Work through it with the family office fit check.

Who invests in what

I start with fit. This table covers ten investor types, the stage they usually invest in and what they want to see.

Investor type	Typical stage	Typical check size	What they want to see	How to reach them
Friends and family	Idea to early business	Hundreds to tens of thousands of dollars	Clear explanation, personal trust, use of funds, risks	Personal conversations and warm introductions
Angels	Early stage	Thousands to hundreds of thousands of dollars	Team, problem, early evidence, clear plan	Founder networks, angel communities, relevant introductions
Angel groups	Early stage	Tens of thousands to low millions per group round	Presentable opportunity, team, diligence materials, fit with member interests	Group application, pitch events, member referrals
Crowdfunding	Early stage to growth	Hundreds to thousands per individual; the total varies widely	Clear public story, audience, campaign materials, eligibility and platform fit	Registered crowdfunding platforms and an existing audience
Family offices	Early stage to mature, direct deals or funds	Hundreds of thousands to tens of millions of dollars	Trusted operators, fit with priorities, understandable structure and risks	Warm introductions, relevant events, focused relationship building
HNW private investors	Early stage to mature	Tens of thousands to several million dollars	Credibility, an understandable opportunity, fit, useful communication	Trusted intermediaries, referrals, targeted networking
Venture capital	Seed to growth, depending on the fund mandate	Hundreds of thousands to tens of millions of dollars	Large market potential, growth evidence, team, fund fit	Warm introductions, founder networks, targeted outreach
Private equity	Established businesses and buyouts	Millions to hundreds of millions of dollars	Financial history, management, transaction fit, diligence access	Advisors, intermediaries, direct sector outreach
Institutional LPs	Funds with an established strategy and operating history	Millions to tens of millions or more	Strategy fit, track record, operations, reporting, governance	Institutional networks, consultants, existing relationships
Lenders	Startups through established businesses, depending on the product	Thousands to tens of millions of dollars	Repayment capacity, collateral or guarantees where they apply, cash flow, credit and terms	Banks, credit unions, specialist lenders, brokers

Check sizes are broad ranges for orientation. Actual checks vary by region, fund mandate, company, structure and investor.

Watch the video

Finding Investors | Ep 15

The video discusses reaching out to investor leads after defining an investor avatar. It emphasizes staying focused and adding value while seeking warm investor leads.

About Richard C. Wilson

Richard C. Wilson has run the Family Office Club since 2007. It is the largest investor club in the world by media reach. The 15-person team hosts 30 events a year, including 16 in person, and has hosted more than 340 events since 2007. Richard shares what he has learned on the Centimillionaire Strategies YouTube channel.

Text or WhatsApp Richard at (808) 600-9260 or email Richard@FamilyOffices.com with a question about your raise. More about Richard.

General education only. Not legal, tax or investment advice.