Technological Tools That Help With Investment: Pick for Startup

The evolution of technology has caught the interest of the general public and investors. The rate of innovation continues to be astonishing. Investors have expanded their investing and organizational efforts in this area. They really focus on identifying good companies, good technologies, and good business models.

Keep reading to learn how you can find investors for your tech startup by using technology as a tool.

What different types of investors are there to fund your startup?

Startups receive funding from many types of investors, each with their own motivations, capabilities, and resources. Depending on your company’s size, capital needs, and strategy, you may prefer one investing group over another.

According to Forbes, there are eight types of investors for a startup:

• Friends & Family: This type investor entrepreneurs should be approaching at the very beginning are friends and family and close personal contacts.

• Banks & Government Agencies: These aren’t true investors like the others on this list, but they can be sources of capital. Traditional banks are generally not an easy source of capital for early stage startups and small businesses. However, as you gain traction they may offer business credit cards, lines of credit and merchant advance loans.

• Angel Investors: Professional angel investors are approached when it comes to the seed round and beyond. They are willing to fund smaller operations than VCs, may be more flexible in terms, and can offer a lot of value in wisdom and connections.

• Angel Groups: These are groups of angel investors who band together to make investments in startups. This enables them to invest with more confidence, with larger check sizes, and with lower exposure to risk.

• Accelerators & Incubators: These vehicles can ultimately be a gateway to a variety of the types of investors on this list. If accepted into one of these programs you may receive anywhere from $10,000 to $120,000 in seed money to cultivate your idea and gain traction, while benefiting from additional knowledge and resources

• Family Offices: Family offices are increasingly being drawn to the advantages of investing in startups

• Venture Capital Firms: VCs are the holy grail of investors for fundraising entrepreneurs. They come with the biggest checks, the most power to fuel success and gaining market share, and most juice when it comes to achieving more credibility and visibility. More venture capital firms are looking at and are participating in earlier funding rounds.

• Corporate Investors: Investing in startups carries a variety of benefits for big corporations. Including supporting their own growth numbers, diversifying assets, and identifying talent and technology which can help them fend off industry changes and fuel revenues and profits.

As your startup grows, different sources of capital will be more advantageous and valuable for fueling that next level of growth. Understanding these differences will be invaluable for an efficient fundraising campaign and targeting the right investors at each raise.

What Are Investors Looking For In Applications and how can we gain their trust?

Perhaps the most important insight into the minds of today’s tech investors is that they are not just looking at companies’ current and short-term projected valuations, but also whether a clear and realistic growth plan can be implemented.

Outstanding tech startups are discovered by investors. You should show potential in your tech startup to gain their trust. Here are the key things that investors need to see from your tech startup and some tips you can use to gain their trust.

A brief description of the issue that your company is attempting to solve in the market This should include evidence that customers are willing to pay for a solution to the issue and that your product or service alleviates or resolves the issue.

Potential for rapid growth Your company must address a significant or expanding market opportunity, and you are well-versed in the customer segments and competitive landscape of your target market.

**Sustainable advantage in the market ** You should have a few large rivals or well-funded newcomers in your target market. Investors are looking for a secure technology or a business model that will give the company and its customers a long-term advantage.

**Financial return on their investment (ROI) ** You need to have a solid financial plan that shows how your company will make money and some reasonable scenarios about when investors will get cash back. Naturally, the valuation and terms of the current investment round that the company is asking the investor to consider must support this.

An experienced management team with a well-thought-out and credible plan for execution Make sure your team includes people who are experts in their field, care about customers, and know the specific segments of your target market. Ideally, the majority of your senior team will have worked for a technology start-up before. The characteristics of successful entrepreneurs should be reflected in your team: enthusiasm, inventiveness, potent leadership qualities, and the capacity to be adaptable in response to shifts in the market.

How to use technology to find investors for your startup?

Know your market (To know oneself is true progress)

To get your ideas clear and organized, you need to write down all of your existing connections and contacts with investors that could be helpful to you. You can get money from thousands of venture capitalists who are willing to invest, but you only need to get in touch with 30 to 50 of them. Follow the guidance you receive along the way when deciding where to go; the best investors offer a recommendation.

Use the connection to find investors

You want investors to give you a recommendation, and it's even better if you get positive feedback from a friend or coworker. Make the most of the connections you've made over the years. Examine the following three aspects of your life:

• School — tap into your alumni networks and business groups that have grown out of them.
• Work — think about all of the people you've worked and collaborated with throughout your career.
• Social — your social network accounts and real-life friends and peers can be invaluable.

Look for people in the finance community or those who know people who do, and make a list of these people so you can approach them systematically. Find out if anyone in your extended network can help you connect with helpful people by putting together a variety of strategies based on your relationship with them. It is never a bad idea to ask others for help.

Try the Pitch Investors Live App Whenever you have facetime with an investor, you really want to get it done. They are more likely to invest their money in you if you invest your time in your pitch. Who is your niche market, and what sets you apart from the competition? Maintain clarity, force, and conciseness. You are the only person who can make your pitch, so you need to understand your value proposition and your pitch deck. Make it simple for people to spread your pitch even if they don't contribute any money.

Turn to LinkedIn to look for investors LinkedIn is undoubtedly the most popular channel for professionals in all areas right now. It can actually be challenging to navigate how to get the most out of LinkedIn for business purposes. And there are lots of opportunities to further your career on that platform. It can even help your business grow!

Going to LinkedIn rather than Snapchat or other tools is the first step. Defining investors’ interests and their contact information is crucial to finding a good startup match. Make the most of our investor finder tool as soon as possible and get full access to our team’s expert assistance.

Get into accelerator programs

You can benefit from the expertise of other businesspeople in your situation. You can find mentors and soften some of your idea's rough edges by participating in an accelerator program. There are a few different ways these programs are structured, but in most cases, you can get equity in exchange for some seed money. At the end, there will be a demo day where you can pitch your great idea in front of interested investors who have money to put into it.

Possible Business Tech Startup Investors

There are six recommendations about possible business tech startup investors for various tech startups.

Angel Investors

An individual with a net worth of more than $1 million or an annual income of $200,000 is considered to be an angel investor. Most industries have people like this who help entrepreneurs who have made it past the seed investment stage but aren't quite ready to join the venture capital scene.

Venture Capitalist

A venture capitalist (VC) is an investor who invests in businesses that they believe have the potential for long-term growth. They are typically people with a lot of spare cash, investment banks, and other types of financial institutions.

Peer-to-Peer Lending

There are websites that specialize in matching small businesses with small scale investors. This type of lending is known as peer-to-peer lending. Venture capitalists do take on a lot of risks, but with the right investment, they can also reap significant rewards. You create a profile, post your business plan, and lenders compete to invest in your company. Typically, things are handled on a very personal level, with the lender and business directly negotiating the interest rate before the money is given to the business.

Corporate investor

Big companies are always looking for ways to diversify their assets, recruit new employees, and take advantage of new technology to stay competitive. One of the best ways for the big players to accomplish this is by investing in startups. It keeps them relevant and may increase profits and revenues. Numerous accelerator and incubator programs, as well as business support ecosystems, assist small businesses in developing their opportunities, and there are corporations that have funds set aside specifically for investing in startups.

Crowdfunding

Anyone can become an investor through crowdfunding. You can pitch your company or product to anyone, anywhere, on sites like Kickstarter, GoFundMe, and Indiegogo, and people can choose to donate or pledge money. The best part is that you won't lose any equity or value in your business.

Accredited Investor vs Non-Accredited Investor

The difference between accredited investors and non-accredited investors is clearly defined by the U.S. Securities and Exchange Commission (SEC), so it's important to know the difference when looking for capital. The SEC requires investors to obtain accreditation. This helps to make sure that the general public is not taking significant risks that are not necessary.

You really want to ensure that your investors are licensed; it's something that each independent venture has to be aware of so you don't get screwed later.

Startups need to take into account a wide range of funding options and investors in the technology sector. If you know the difference, your search for capital will be simpler and more efficient, and you will have a better chance of quickly locating the right investors.

Finding investment is definitely a goal that can be accomplished; anyone who says otherwise does not know anything, so you should ignore them. Things ought to become clearer, a little easier, and more quickly if you follow our advice.

Conclusion

The above tactics can help you to find and attract technology investors. For startups that are just starting out at the idea stage, creating an MVP is a great way for investors to easily test your product and increase the possibility of receiving investment.

At MLTech Soft, we provide a service to help you create an MVP in just 30 days. Let’s prove the potential of your technology startup idea and impress your investors with an MVP.