You can have a great startup idea and a solid product model, but the challenge is where to find the resources needed to make it real. Apart from ideas, creativity, and solid skills, there is a crucial element to create or grow a startup: funding. But, where can you find investors willing to support your idea development?
Luckily, online communities and fundraising platforms make it easier for entrepreneurs to connect with investors. In this post, we show you the best startup funding platforms and communities to look for potential investors.
Best Places to Connect With Investors
- Day One
- Seed Invest
Whether you’re a grown maker or an aspiring one, there are many communities for entrepreneurs for people in your stage of building. You’ll be able to find not only support and accountability advice but also investors looking for projects like yours.
If you’re looking for investment, you won’t want to miss the best communities that match investors with entrepreneurs. These groups will have an impact on the future of your startup! 🚀
How Can Entrepreneurs Match With Investors?
According to one of Startups.com‘s playbooks called “Funding”, startups are almost always financed by one -and ideally, a mix- of three methods: using your own capital (or become a part of a mutual fund, called investment clubs); investors who give you their money in exchange for an equity ownership interest (also called angel investors); and through loans (which include small business loans, venture capital and alternative lenders).
We would add a fourth financing method: crowdfunding. This type of financing allows entrepreneurs to create an online campaign with the objective of raising money for their project or business through donations from individuals on the Internet.
💡 Startups.com states that almost every startup funding strategy is a mix of several types of funding at the appropriate levels during suitable times.
The type of investment you’ll need will also depend on the size of your company. If you’re just getting started, you’ll need different investors than if you are already in an expansion stage.
Be it that you’re in an early stage of your company or in an expansion one, you’ll also need a convincing pitch to present to your potential investors. The pitch has to have some key information about your startup and a clear and business plan. You can find more about how to create a good pitch in Startup.com’s “Funding” playbook. Now it’s time to actually find investors!
Best Fundraising Platforms and Online Communities
Whether you’re looking to create professional connections or you’re actively looking for funding, there are plenty of online communities and fundraising platforms where you can present your business idea. Here’s a list of the best places to get investors for your startup.
There are communities that organize events to motivate encounters between entrepreneurs and fellow cofounders and advisors. An example of this is FoundersBeta. This type of space is good to create connections and increasing the chances of meeting potential investors.
This community focuses on entrepreneurs that belong to the LGBT+ community and counts with multiple acceleration programs. Also, they have several in-person and online events where entrepreneurs and founders can connect with each other and with potential investors. They have a founders program specially dedicated to connecting founders and investors too.
This group we previously mentioned has Founders Groups, a niche of around 8 professionals who are open to listening and helping entrepreneurs and startup founders.
4. Day One
This one’s a community that joins aspiring entrepreneurs with expert ones through diverse programs. These include weekly one on one coaching sessions with expert founders and entrepreneurs.
Propel(x) is an online investment platform that enables accredited investors to invest in technology startups and venture capital funds.
Members range from individual accredited investors writing checks as small as $5,000 to some of the largest family offices and funds writing checks of a million dollars or more. One can expect to see Early Stage (Series A), Growth Stage (Series B, C), and Late-stage (Series D or later) investment opportunities on the platform.
This group has the specificity that it’s a Spanish-speaking community! As the one before, it provides plenty of information and resources for entrepreneurs who want to know how to make their business grow.
This one is a paid community. That’s why, to join, wannabe members have to pay a €999 yearly fee. Then, entrepreneurs and founders will have access to resources and support from colleagues. This group also offers mentorship opportunities for entrepreneurs who are at an early stage of their startup growth.
Investing.io is a community created for entrepreneurs turned investors. This group offers founders who are venturing into the investment world several resources such as a twice-weekly newsletter, guides and SOPs. They also have a Discord group where entrepreneurs can chat with other colleagues.
How Do Venture Capitals Support Entrepreneurs?
Venture capital (VC) is a form of private funding that individuals, investment banks, or other financial institutions provide startups that will most likely have long-term growth potential.
While the form of investment is usually monetary, there are also other forms of financing. These include managerial or technical expertise.
According to Amir Kabir, venture capital has four key items: network and knowledge; if you’re a venture capital investor, knowing how to pick the right deals; securing allocation; and adding value post-investment to the project you invested in.
This one’s a group created especially for venture and growth equity investors. It offers its members access to a Slack group, and multiple resources such as a knowledge library, and a job board.
A startup investing platform with over 600,000 investors helping entrepreneurs with funding opportunities. If you’re wondering how to get investors for your business, Seed Invest it’s a great place to get exposure and raise capital.
Frequently Asked Questions About Fundraising for Startups
There are many ways to connect with potential investors online. You can expand your network on LinkedIn, launch a crowdfunding campaign on Kickstarter, or even participate in startup hackathons and accelerator programs. But one of the best ways to reach to investors to fund your startup is by joining online communities in your niche.
To join an online community for entrepreneurs, go to “Business Communities” and filter by adding “Investing” in categories to find communities that match investors with entrepreneurs.
To find online communities of investors in the United States follow these simple steps:
- Go to “Business Communities” and filter by adding “Investing” in categories to find communities that match investors with entrepreneurs.
- Add “United States” in the Country filter.
Reaching potential investors can be tough for entrepreneurs, especially after trying to connect with supporters without success. If you want to look professional and prove the value of your idea, do this after connecting with an investor:
- Define your goals
- Work hard on your pitch.
- Define the value proposition.
- Use relevant statistics to prove your idea satisfies a real need.
- Explain why you need funding and how you plan to use it.
To become a business investor, learn about different types of investments to discover what works best for you. Then, join online communities for investors and entrepreneurs to find innovative projects to invest in.
Here we’ve listed just some of the reasons why online communities are great to match aspiring and full-grown entrepreneurs with investors! And if you are in that stage of researching where to find investors online to launch your startup, you definitely must try joining the communities below.
If you already matched with investors willing to fund your projects, don’t miss our selection of product validation techniques to test in 2022.