How to find investors for your company

Do you have a business idea that you want to get off the ground with, but need the necessary financial resources? Whether you are a start-up or have been running a company for some time, an investor will give you the tailwind you need to implement your project. In addition to funds, in many cases an investor can also provide you with important industry knowledge. That’s why it’s important to be careful when choosing an investor so that they are a good fit for you and your business model. In this article, we explain how to find suitable investors.

What kind of investor are you looking for?

In order to find a suitable investor, the first question is what kind of investor you are looking for. The question here is whether you want to bring equity into your company or finance your idea with debt capital. The most important differences between equity and debt financing are as follows:

Borrowed capital is often provided by a bank or credit institution. The money is only available for a limited period of time and must be repaid. Interest accrues during this time. As an entrepreneur, you can use the money as you wish, as the lender usually has no say in the matter.
Equity is provided by an investor. This investor usually buys shares in your company. The money invested is immediately available to you. However, the investor may have a say in how the funds are used through the shares. The advantage is that you do not have to repay the money and can benefit from the investor’s know-how and network.

How much money do you need?

The next question you should ask yourself before you start looking for investors is how much money you actually need. For this, it is essential that you have a sophisticated business plan. You can use the figures in it to calculate how much your company is worth and how this value will increase in the coming years. With the company value in mind and the forecast, you can calculate a realistic sum that you can use to take your idea forward.

Remember that it doesn’t have to be just one investment. It is quite common to make several investment rounds to finance different steps in the realization of your vision.

How you can find investors

There are several ways in which you can find a suitable investor. We present some of them here:

You use your own network: If you have been working as an entrepreneur for a while, you will certainly have a network in your sector. Here you can approach potential investors in a targeted manner.
Network at trade fairs and congresses: Special events such as trade fairs and congresses for start-ups are the ideal platform to be seen. This is where investors and innovative entrepreneurs meet. Present your idea to interested investors or those you think are suitable. There are often pitch events at such events where you can present your idea to several investors at the same time.
Approach investors in a targeted manner: With a little research, you can find a potential investor who suits you and your company.
Commission an experienced company with the search for investors: It can be very tedious to look for an investor on your own. It therefore often makes sense to outsource the search. Companies that specialize in finding investors have a large network and therefore have a good selection of investors who are suitable for your company. They also know all the stumbling blocks in the search for investors and are there to help and advise you every step of the way, right up to successfully finding an investor.

Do you need help finding investors?

We at CONFIDEX are happy to help you find a suitable investor for your company. We support you throughout the entire process and are available with a personal contact person to answer any questions you may have. Please contact us for a non-binding consultation.

Let us advise you