Think you have the next Facebook or YouTube idea ready to make you million, but don’t have the finds to get it off the ground? Outlaw Design Blog is here to help with a collection of sources to help you find funding for your startup, how to contact investors, and advice on finding the right place to get your funding.
There are a number of websites out there that are designed to help match investors with entrepreneurs. These websites can be a great place to find the perfect investor and get the funding you need for your web startup, but to get the most from these websites it will require time and money.
Many of the note worthy investor sites will charge a fee, either up front or on a monthly basis. This fee is usually a few hundred dollars. The reason for this high fee is to make sure only serious business ideas and entrepreneurs are put in touch with investors. Be weary of investor sites that advertise free listings.
Before you even bother listing your web startup idea on these sites, you will want to make sure you have all your ducks in a row. If you dont have a serious business plan and marketing plan in place, don’t even bother posting, as your idea won’t be taken seriously.
Open Deals – Charges a one time fee of $250 for 30 days. The site has over 400 angel groups that are ready to look over your web startup idea.
Go Big Network – Charges a monthly subscription fee to put your idea in front of 4,000 investor. they also offer business plan writing services to help you make sure you look as professional as possible.
Funding Universe – Plans starting at $99, but they also offer a free sign up if you want to look around. The price also include 1 lessons on finding funding, webinars, and more.
More Funding Resources
Inc.com – Inc Magazines complete list of investors
All Business – A nice article on how to contact investors.
Master Plans _ A business that helps you write a business plan aimed at getting funding.
What Investors Look For
In order to maximize your efforts to secure funding for your online startup, you need to know what investors look for. Having a good business idea is only half the battle. Investors want to know things like how the business can grow, how the business can make more money later down the road, your experience in the industry and much more.
Some of the things investors look at include:
- The idea its self.
- Your experience in the field.
- How can your idea grow?
- Location to the investor.
- The industry of your idea.
Your idea may sound good to you, but that doesn’t mean it is worth investing millions into. Spend some time talking to others about your idea and get feedback on it. If you get good feedback on your idea from a variety of sources, the next step is to start thinking about the logistics. Start working on things like a business plan, marketing plan, gathering demographics, and researching the competition.
You need experience in the field of your idea. If you want to start the next Google, but know nothing about web development, you probably wont get the funds you need. If you don’t have experience in the field of your idea, but still think its a winner, try to partner up with someone who knows the industry.
Business is about growth and that is a major factor investors look at. Your idea needs to have scalable. It needs to be able to grow or at least have the potential to generate multiple streams of income. For example, YouTube has the ability to incorporate ads into videos, could charge for premium accounts, and other forms of revenue. Make sure your idea can grow on a large scale. Think chain restaurants and not a mom and pop shop.
Investors like nearby businesses to their location. This way they can meet with you in person and regularly check up on their investment. Its just a little easier to give someone a large some of money when you know they are only a few hours away. This means you should try targeting investors in your area before you start looking elsewhere.
Investor like to invest in what they know. They feel more comfortable investing in a business or industry that they know about. Try to target investors that have experience investing in other businesses in your industry. You will get better results looking at investors who know about your industry.