Need Help Getting An Investor? Here’s What To Do




May 3 2024, Published 8:10 a.m. ET

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Building a business requires money, but not everyone starts their career with a hefty savings account ready to go. People from disadvantaged demographics may struggle to find interested investors more because they face systemic biases. Your dreams are still possible if you use these tips to attract an investor and navigate the process with confidence.

1. Create the basis of your pitch.

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Think about why you built your brand. What’s your primary goal, and what are your values? Use those answers to craft your pitch. Investors are more interested if you start with an exciting story and back it up with facts proving how you’ll grow their investments.

Places such as PitchBook have tons of resources for entrepreneurs seeking help. Follow its pitch deck guide to break down your introduction and vision before launching into your future business practices.

Investors will want to know how you’ll manage their money, such as reducing your overall costs with tax-deductible health insurance plans to improve your long-term bottom line. Specific cost management strategies will assure potential investors that they won’t give their money to an entrepreneur who hasn’t thought everything through. Save your preferred practices and techniques to prepare for your pitch and any questions afterward.

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2. Build a list of angel investors.

Angel investors are people with high net worth who want to invest in emerging businesses to build wealth and various markets. They’re an excellent resource for entrepreneurs from minority demographics who may struggle to get funding, even from investors with good intentions. 

Research shows that investor groups that prioritize diverse founders still give 79% of their funding to brands created and run by white women. Diversifying your potential investor list with numerous individuals and groups interested in your market is crucial. Sites such as Angel List and Gust host investor databases you can refine with filters.

When you find a few that catch your eye, look up their most recent public investments to determine what captures each company or individual’s interest. People in your entrepreneurial networking circles might also have personal experience with them, which is invaluable when deciding where to pitch. The best choices will be the investors who fit your business values and growth plans.

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3. Double-check your numbers.

Every pitch needs to cite specific numbers investors use to make a calculated decision to become interested in your brand’s story. While drafting your pitch, include information such as:

  • Your expected and potential customers
  • Your market size
  • Potential market growth
  • The economic value of the space you’re disrupting
  • How your sales and marketing plans will work based on related examples
  • Your brand’s potential revenue within a projected time frame
  • What margins investors can expect based on your growth projections
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If you impress your preferred investors with your well-researched numbers, you can move on to other essential parts of the conversation. You’ll need to ensure they have the cash on hand to fortify their investment promises in your business, which they’ll be happy to discuss after seeing the numerical proof that they can trust you with their money. Get everything in writing while weighing your options to keep each investor’s offer organized and separate from others.

4. Don’t forget your potential strategy.

Investors and entrepreneurs form exit strategies to finalize and obtain their eventual profits. Consider if you want to do the same with your brand. You could sell it one day and use the profits to launch an even bigger company. If that interests you, add it to the end of your pitch.

Outlining the metrics you’d use to mark the end of your involvement with your brand will also show investors what they should look for. It clarifies how long they’ll get to invest in your success. Depending on their strategies, some may want more short-term or long-term deals.

If you still need help getting an investor, Her Corner is a community of women helping each other through their entrepreneurial careers. You can also get support or advice from organizations such as Ellevate Network and Women Who Startup, which offer in-person and online resources for women seeking guidance as their businesses grow.

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By: Mia Barnes

Mia Barnes is a health journalist with over 3+ years of experience specializing in workplace wellness. Mia believes knowledge is power. As the Editor-in-Chief of Body+Mind Magazine, Mia's goal is to cover relevant topics to empower women through information.

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