Well, here are a few recommended routes you could take:
One of the best ways to secure investment funding is always to mine your current contacts. Do this by asking if they are aware of anyone looking for a new project in your industry/sector. If they are then get them to introduce (and recommend) you to that individual – a ‘friend of a friend’ is always a better opening line than having to go in as an unknown entity. Not only that but if the potential investor likes this friend of yours then it shows you in a more favourable light.
Check out the whole industry or sector you’re trying to break into. Is there anyone there who might want to extend their influence in the field and invest in you too? You’ll find that often investors prefer to stay within a sector that they are already very well familiar with, rather than break out into somewhere new. Research by checking out trade publications as well as using online resources.
Angel Investment Clubs
These can prove good sources of potential investors but don’t just join any club. Do some research beforehand to see how successful and active the club is. Or is it just a talking shop which demands an annual fee?
If you haven’t heard of this term then you must have been asleep for the past few years. Crowdfunding is becoming an increasing popular means of gaining funding. It’s where a number of individuals buy into a scheme via a much smaller sum than they would normally.
There’s no reason why you have to restrict yourself to one of these methods to source funding. Why not try all of them and see which one turns up trumps for you?
Varying your investment sources rather than just relying on one large funding opportunity is healthier as it means you’re not dependent on the fortunes of one individual or company.
Raj Dhonota is a serial entrepreneur and investor. He grew software development company Igniva Solutions from zero to a team of 400 with a turnover of around £2m per year.
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