Raising ample funds for your startup can be one of the most difficult parts of getting your business up and running. But just because you’re desperate to get your idea off the ground, doesn’t mean you strike a deal with any investor that seems interested in your startup. It is your job to choose an investor for your startup; don’t let the investor choose you!

With advancements in technology, entrepreneurs have a plethora of options when it comes to choosing investors- angel brokers, venture capitalists, crowdfunding websites, and more. While you need to give some thought to the type of investor you’ll be selecting, first and foremost, you need to focus on choosing an investor that is right for you and your startup. You certainly don’t want to be stuck with an investor whose interests, ideals, and goals are way different from yours!

If this is something you had never thought of, you’ve come to the right place! Read on to know how to go about choosing the right investors for your startup.

Be Clear about Your Goals

To be able to find the right investors, you’ll first have to be clear about what you want. Having a vision and mission statement for your company will help. Note down long-term and short-term goals you wish to achieve and also set realistic time frames for all of them.

You’ll also have to decide if you want your investors to be silent partners or be actively involved in the day-to-day affairs of your company. If you don’t want any interference from investors when it comes to making critical decisions, you will have to specify the same beforehand.

Stay Away from Time Wasters

You are bound to come across plenty of time wasters. More often than not, these will be brokers posing as investors hoping to pocket a commission by introducing you to investors.

You will also come across investors who can’t seem to make up their mind quickly. While you need to pursue investors to make an investment, if they keep stalling you or making false promises, realize that it’s time to move on.

Find Investors with Like Interests

When you’re looking for funds, it can be hard to turn down offers from investors. However, it is necessary to associate only with ones that have the same interests as yours. Entrepreneurs and investors with aligned interests are sure to be able to get things done in a way that both parties are excited about. This can translate to lesser disagreements and goals being met quicker!

Furthermore, an investor that operates in the same field as yours will typically have some expertise that you can put to good use. And if such an investor has invested in similar businesses in the past or has current investments in like companies, you should be certain that you’ve found a potential investor!

Use professional networking websites to your advantage to find investors with similar interests. Several good professional networking sites have members associated with a range of business segments and industry specializations. With such websites, you will also be able to get in touch with investors from around the world.

Pick Investors You Can Trust

A lot of things are likely to change in the initial stages of your business. At times, new experiences might worry you and it will help if you have investors you can talk to openly.

Additionally, you need to know for sure that your investors won’t abandon your company in times of turmoil. So be sure to pick investors who are sure to have your back during the bad times.

Look to Solve Current Problems

Perhaps you’ll come across an investor who can help you better in the later stages of your company than now by adding value to your business. As you don’t need them now, politely decline their offer and turn to investors who can help you deal with your current problems.

As a startup, you would rather have investors who will believe in you and let you execute your own vision than have investors mold your company as they see fit.

Don’t Be Afraid to Say No

You don’t necessarily have to get all your funds from just one investor; it is common to rope in many investors at the same time. However, you may want to set a minimum amount that any potential investor needs to invest in your startup. Suppose an investor wants to invest but is unwilling to meet the required minimum, don’t be afraid of declining the offer.

Refusing investment offers that aren’t aligned with your goals saves you from establishing relationships with investors that aren’t right for your company. Doing so also means that you play fair by promising the same terms to all your investors.

Remember to be courteous when declining offers- you never know when you might need them down the road. You don’t want to burn your bridges just because you have other investors lined up! And be honest; state the exact reasons for turning down their offer and you’re sure to be in their good books.


If you don’t have access to unlimited funds, approaching investors and getting them to invest in your startup is the only way forward. The right type of investment can make a world of difference to your startup and the right investors can help your business grow exponentially!

All startups being different, you can’t entirely apply another business’s success formula to yours. As such, rely on your skills and weigh all investment options carefully. With the tips given here, you now know how to go about choosing the right investors for your startup. So get started as soon as you can!

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