Some founders believe that the only way to get investors on board is if they are picked by an accelerator or incubator. But I'm here to show you that there are other ways to locate investors.
As someone who works with startups and hears this question virtually every day, I decided to compile a list of the finest sites where you can find your next investment for your business and take it to the next level.
1. Investor Hunt
Investor Hunt is ranked first in 2019 as the finest online tool for finding an investor for your firm.
Investor Hunt connects you with over 40,000 angel and venture capitalists. There are three distinct plans to pick from.
A standard service for $69 per month that includes unlimited searches, investor name data, social media links, and past investment data per investor.
A $149/month pro package that expands on the basic plan with exporting capabilities and direct email addresses. And a $299/month premium package that includes investor phone numbers and office locations.
Their database is stocked with investors interested in anything from digital to physical items, so your hardware firm is sure to find what it's searching for.
You can be confident that you'll receive your money's worth with Investor Hunt because it was created by Product Hunt.
02. AngelList
AngelList is one of the most well-known sites. AngelList connects companies with seed finance and angel investors.
It also features a job board for anyone searching for work in the startup world. If you're seeking for new members, you may also publish employment advertising.
To boost your chances of receiving investment, AngelList allows you to create your own network on the site, either by email invitations or by integrating your social media profiles. You can also utilize its search feature to identify investors who are a suitable fit for your firm.
Making an account with AngelList is free, so you have nothing to lose by using this platform to find investors.
03. Republic
Republic is another another excellent site for crowdsourcing startup investment. The website is powered by AngelList, which is highlighted next, therefore it is quite credible.
Using Republic provides you access to the general population, removing the need to rely on angel or venture financiers. For as low as $10 USD, anybody may invest in your firm. This makes it more accessible to those looking to invest.They will provide you with excellent tools to help you construct a branded campaign website that will accept all forms of contributions, including ACH and wire transfers.
Republic charges a flat fee of $3,000 to solicit funds, and they collect a commission on successful campaigns.
Only firms headquartered in the United States are eligible to raise funds on this platform.
04. GlassDollar
GlassDollar specializes in connecting your company with investors. They have their investors fill out criteria and then match businesses that satisfy that criteria to them.This simplifies the process of sourcing and locating investors. You will only be matched with appropriate investors, saving you time and energy.
You get to choose which investors will hear your proposal and then proceed from there.
GlassDollar is completely free to use, and there is a simple examination to discover if your firm is eligible.
Finding investors has never been simpler — or cooler — thanks to this clever machine learning technique.
05. Wefunder.
Another alternative for raising cash through crowdsourcing is Wefunder. Wefunder has been in the business for a long time and knows how to generate results, as evidenced by a thorough analytics website.So far, they have assisted hardware entrepreneurs in raising more than $9 million in total. Wefunder allows you to raise anything from $20,000 to $50 million.
Startups spend nothing to begin their marketing. Wefunder only charges companies with successful campaigns. Their cost is 7.5 percent of the total fundraising, and they will match any lower price you discover elsewhere.
However, only for-profit, US-based corporations or limited liability companies (LLCs) are recognized.
With no beginning costs, you have nothing to lose by attempting to raise cash with Wefunder.
06. LaunchEngine
StartEngine is an equity crowdfunding platform that is ready to assist companies in raising funds.You may attract investors from their network of 200,000 individuals if you have a creative team to assist you develop your campaign. You'll also get access to an account manager and a drag-and-drop functionality to help you construct the ideal campaign page.
Startups negotiate their own conditions with their investors, who may readily invest via credit cards, ACH, bank transfers, and cryptocurrencies.
Hardware startups must be based in the United States in order to be approved by StartEngine. StartEngine will also assess businesses based on revenue, team, customer engagement, previous funding, marketing budget, and market growth to determine whether your startup has a strong chance of succeeding through crowdfunding.
StartEngine is an excellent option for entrepreneurs wanting to crowdfund their capital raising. There are no listing costs and simply a 6% payment from StartEngine when the campaign is successful.
07. Indiegogo Equity Crowdfunding
Equity Crowdfunding by Indiegogo, created by the renowned crowdfunding site Indiegogo, is designed to assist companies in raising capital for entire businesses rather than specific items.
Startups can raise capital through either flexible or fixed funding goals. Flexible funding allows startups to keep all of the money they raise, whereas fixed funding requires the goal to be met before the money is released.
You will also obtain tools to aid with marketing, promotion, fulfillment assistance, and campaign management via various devices.
Indiegogo's Equity Crowdfunding charges a 5% platform fee while crowdfunding, although the site is free for entrepreneurs before they debut.
Indiegogo provides other services for entrepreneurs, making them a one-stop shop. Look through their directory to find creative services, marketing services, prototyping, retail distribution, and website development.
This platform will work well with your hardware startup because it was created by a reputable company.
08. SeedInvest
Startups may have access to 250,000 investors through SeedInvest's startup funding platform. So far, they have assisted in the raising of more than $100 million for 150+ firms.SeedInvest pays no retainer to accepted businesses. They will cover all upfront fees, which entrepreneurs will pay in the form of a $10,000 flat fee at the closure. Startups are only held accountable for successful marketing. If campaigns fail, SeedInvest will cover the initial expenditures.
Placement and equity fees are examples of additional expenses. Again, they are only charged if the campaign is successful.
SeedInvest has a stringent application procedure and only accepts 1% of the firms who apply. Before moving further, startups must fulfill the bare minimum. A minimal viable product (MVP), proof of concept, and at least two full-time team members are required for startups.
They also have a strong preference for technology and consumer-oriented companies. So, if your hardware startup meets those requirements, SeedInvest is a fantastic opportunity.
09. FundersClub
FundersClub promises to provide an unfair edge to companies by utilizing sophisticated tools and their huge worldwide network of 22,000 members.Startups have access to a founder network where they may interact with other entrepreneurs and get help through online and in-person events.
You will also receive access to mentorship from members of FundersClub's staff. These team members have been through the whole startup cycle, from launch to exit.
FundersClub earns a share of the investment's earnings. They are only charged if the campaign has a successful consequence.
Although the eligibility conditions are not stringent, they only admit 2% of applications into their platform. They are searching for startups in their early stages, with a seed or Series A financing preferable. They want to know if your startup has the potential for rapid expansion.
10. OurCrowd
OurCrowd is a worldwide equity crowdfunding platform that invests in entrepreneurs throughout the world. They have a global investment community of approximately 30,000 people.They have a 5-step procedure for entrepreneurs. In step one, startups will be vetted before meeting with OurCrowd in step two.
The third step is due diligence meetings with the investment teams. Following that, your business will be submitted to the investment committee, which will make its ultimate judgment in step four.
If your business is accepted, it will proceed to the funding round in step five. You will have access to investors and will be able to participate in events at this stage.
Bonus 1. Foundersuite:
Founded in 2016 by Nathan Beckord, Foundersuite has assisted countless entrepreneurs in raising over $2.2 billion in seed and venture capital.It provides access to an amazing database of around 41,000 funds, including VC, strategics, family offices, and others, as well as more than 100,000 angel investors.
This platform provides low-cost monthly memberships in a variety of programs, including a free trial to see what the platform has to offer and how it operates.
It also has an intriguing concept: an investor CRM, where you can use a pipeline to verify and follow up on the progress of your investment research.
Definitely another place to try if you want to raise money effectively, especially with this CRM pipeline that will help you save time and focus on other concerns, since we all know how time-consuming obtaining cash can be. Foundersuite has a more in-depth piece on medium on Foundersuite.
Bonus 2. Crowdcreate
Crowdcreate is a one-of-a-kind growth marketing solution that helps firms increase investor financing and influencer sales. What distinguishes them? Their track record of generating more than $130 million dollars across 80+ successful client projects speaks for itself. Over the years, they've created a network of investors, influencers, and strategic alliances to help firms flourish.In a nutshell, they connect businesses with qualified investors who routinely allocate funds. To bring people in front of investors, they use a five-step procedure.
Step 1 — IDENTIFY — Compile all of the key investor databases using machine learning.
Step 2 — QUALIFY — Select the best investors for your fundraiser.
Step 3 — PITCH — Create personalized pitches for your firm that have been A/B tested and proven by sending hundreds of thousands of outreach emails.
Step 4 — INTRODUCTION — Call our pools of qualified investors for one-on-one feedback and interest.
Step 5 — OPTIMIZE — We change your messaging and pitching strategies on a monthly basis.
However, this possibility comes at a price that not everyone can pay, particularly early-stage firms, with the starting point being 1500USD each month to present you to 500 investors per month.
Locate Potential Investors
I hope the following possibilities have given you some ideas on where to go for funding for your company goals.It is difficult to find investors, but knowing where to seek is the first step. After you've considered all of your possibilities, you may focus on improving your chances of acceptance.
When you know where you'll get investors, you can devote more time to developing your pitch and campaign materials.
Please let me know if you have any comments or questions about this list. Also, please let me know if I overlooked any services that assist entrepreneurs in obtaining the necessary finance.