You are ready to work on your dream blockchain startup amid the boom in the industry but can’t figure out how to scale? Converting ideas into reality and scaling a business requires funds. Finding investors for your blockchain startup is easy if you have the right strategy to approach them. All you need to find is like-minded VCs and angel investors who have invested in an industry similar to yours.
Source: https://pixelplex.io/blog/top-blockchain-startups/
To find the right investor for your startup, you need to identify your business requirements before approaching potential investors. You must also be sure about the kind of investors you want to approach. Both of you must have shared goals. If you are planning to enter a specific ecosystem, i.e. Metaverse, gaming, Defi, you must look at the portfolios of investors who have prior investments in the same ecosystem. More and more startups in the blockchain industry have been raising funds from Angel investors and VCs.
When you collaborate with an investor in the early stages of the startup, you have the opportunity to expand your network and build profitable connections in the industry. You can always benefit from the expertise that these connections bring to the table. Building connections also help you raise more funds from within the connections during various stages of the startup. Investors bring a lot of things to the table other than funds. They provide you access to top professionals, top agencies, seasoned professionals and key exchanges. A track record of working with similar projects makes the partnership credible.
Source: https://frugalentrepreneur.com/2018/07/how-to-find-investors-for-startup/
The real question is, how do you find a suitable investor for your startup? Well, there are various stages to finding the right angel investor.
Approaching Investors For Your Blockchain Startup
According to various records, close to $40 billion was invested in blockchain startups in 2021 alone. These investments came from both Venture Capitalists as well as Angel investors. While analyzing some records, we found that companies with a value of over $100 million were the first choice of Venture Capitalists. This means you are not alone in the race to find investors for your blockchain startup, and angel investors are more likely to invest in new businesses than Venture Capitalists. However, with the right strategy, you can attract investment from both angel investors and VCs.
For investors to invest in your blockchain venture, they must be convinced that it won’t be a loss-making business in the future. Some investors are interested in investing in specific types of businesses. You must research the kind of investors you want to attract. Investors look at certain factors, including Whitepaper, Tokenomics, Auditing, Rugpull check, and KYC, before putting in their money into a startup.
It would be best to have a proper presentation ready to explain your business ideas to the investor you are meeting. Your presentation should have multiple slides with adequate information about the technology you will use, target audience, target locations, scalability plan, etc.
Source: https://www.opengrowth.com/article/what-is-a-fair-percentage-for-an-investor
An investor will look at multiple businesses before putting their money into one of them. With such cutthroat competition in the blockchain space, your business must stand out to attract investors. Make sure that you come straight to the point without wasting too much time talking about yourself. Your presentation should be brief, to the point and must contain significant numbers, statistics and charts to make the pitch sound impressive.
You must be ready with all the essential data, including the type of business model you will choose, competitors, team size, etc. A good idea, however, is not enough. The way it is presented also carries a lot of weight. So, it is an impressive idea plus a persuasive pitch. While pitching for investment, you must fill the maximum number of checkboxes in an investor’s checklist.
Factors That Investors Will Consider Before Investing In Your Blockchain Startup
To persuade investors to invest in your startup, you must know what they are looking for. A comprehensive idea of market standards, outlook, and future plans will always come in handy while pitching to potential investors.
Source: https://www.123rf.com/stock-photo/investor.html
Here are a few aspects that an investor might look into before investing in your startup:
Team: The success of a startup depends a lot on the people running it. Investors always want to know the people on your team and if they are passionate enough to convert ideas into plans. When presenting your team structure to the investors, make sure that there is detailed information about your team members’ education, work experience, and professional background. An investor would always want to work with a skillful, passionate, and experienced team.
Detailed Market Strategy for Category Growth: The lower the number of competitors, the higher the chances of success. However, this doesn’t mean you can’t succeed in a market that has cutthroat competition. All you need is detailed information about your competitors and how you can stand out. Investors will always be attracted to a business that knows how to stand out in a competitive market. You must study the portfolio of the investors that you are approaching to single out those with shared goals and investments in projects similar to yours.
Product Differentiation: When you start a business, things might not go your way initially. How you plan to deal with challenges and roadblocks will always be a factor that can make your pitch stand out. You can’t be rigid with your strategies when dealing with challenges and must be open to feedback. If you successfully convince the investor about your crisis management strategy, your chances of raising funds will increase exponentially.
Live Products and Active Community: How you use the funds is another important aspect that an investor will consider before putting their funds in your business. There needs to be complete transparency about the use of funds for running the company to make an investor think about working with you seriously.
Marketing Plans for World Domination: An investor will always invest in a business with long-term growth potential. It would be best if you had a strategy ready regarding the expansion plans to make your pitch more impressive.
Source: https://www.nexea.co/what-are-investors-looking-for/
Raising funds from an Investor means building a one-to-one relationship between the founder and the investor. Such business relations must be handled professionally, and having an expert manage your business relations increases your chances of raising funds significantly. If you are looking for professional help, your search ends at Zuvomo.
Wondering where to start? Let’s speak!
We have a team of seasoned business experts and professionals with years of experience who have raised over $500 million for more than 100 companies, including Morpheus.Network, Vulcan Forged, and Landshare. Working with leading businesses and clients in the crypto space has helped us understand the vitals of the blockchain industry really well. From launch and marketing to full-stack funding advisory, we do it all. We also have an association with Keynote, the organizers of the longest-running crypto conference- TNABC. The exponential business growth of our clients is a testament to our quality work. If you need professional help in finding investors for your blockchain startup, contact us at hello@zuvomo.com