Fundraising is hard, particularly for first-time founders. You’ve done the work, proved the business is viable, prepared your deck and built a financial model. What next? Finding the right investors requires a strategic and proactive approach. The most successful connections are built through targeted research and networking. Here’s a roadmap to help identify potential angel investors.
Start with your existing network
Your first and most effective source of introductions will come from your existing professional network. Use LinkedIn to map out your existing connections. Create a list of people who have experience in your industry and a second list of people in your network who might be able to provide a warm introduction. You should also tap into your network of former colleagues, university alumni, mentors and advisors. These people may have direct connections to investors or know someone who does.
Engage with the startup ecosystem
Immerse yourself in places where investors and founders get together. Firstly, sign up for events and conferences. Investors often attend industry-specific conferences, pitch competitions and startup showcases. Be strategic about which events you attend, focusing on those relevant to your sector and make it your goal to connect with speakers and attendees.
Accelerators can also be excellent launchpads for connecting with investors. They often have extensive networks of mentors and alumni who are frequently active angel investors themselves. The credibility gained from participating in a reputable accelerator can be worth it - think of these as curated communities.
Many angels pool their resources and deal flow, which can make them easier to discover. Take a look at angel groups and syndicates, which are organisations where investors review deals and invest together.
Ask your professional service providers
Many professionals support your business and might be able to help open doors. Lawyers, accountants, and consultants often have deep connections within the investment community and can be a great source of referrals. When you find the right investors, your chances of securing funding increase dramatically.