These days, it is easy to start a business. But depending on the scope and scale of your startup, you may need help with funding. We’re here to help you understand how to attract investors to scale your startup business.
The thing is, a Crunchbase profile may not be enough. That’s because investors would look at other factors like risks and product-market fit.
But that should not stop you from attracting the right investors to help fund your startup. And here seven digital marketing tips that can follow:
1. Identify Relevant Investors
Here’s the thing: Not every investor is right for you. And just because someone is known to invest in startups, it does not mean you should bother them.
According to Michelle Dipp, co-founder of Biospring Partners, the key to attracting investors is to know which ones are relevant to your niche.
If you want to run a healthcare startup, it makes sense to reach out to venture capitalists who invest primarily in Life Science businesses.
2. Have A Website
Another thing that can help you attract the right investors to your startup is to have a website. After all, how would VCs know that your startup exists?
But considering that you are using your website to also attract investors, you should have a page dedicated to that. And ensure that it can target search queries that a potential investor
is likely to use.
3. Publish Investment Relations Content
Aside from having a search engine-friendly and well-optimized website, it should have an investor relations page.
Investor relations is a part of your startup that provides an accurate account of your business affairs. Your IR content must have a brief overview of your startup, a stock evolution chart, and a downloadable IR presentation.
What’s important is to keep your IR content as engaging as possible. That way, existing and potential investors can have an informed decision on how to best fund your startup.
4. Leverage Digital PR
Online public relations is another excellent idea for how to attract investors to your business. To do that, you need to develop a robust digital PR campaign. This includes getting published on relevant online media outlets.
If you developed a cutting-edge instant messaging app, for instance, you might want to be mentioned on Product Hunt or Tech in Asia. It’s likely that a potential investor is checking these websites searching for a startup worth investing in.
5. Maximize Your Social Media Channels
Social media marketing lets you connect with your audience, including your potential investors. However, maximizing such a platform is more than just having a Facebook page.
Platforms like Facebook and Instagram are great in showcasing what your startup products or services can do. However, a VC will not reach out via these channels.
They will often check who the startup founders are and whether they have an email or LinkedIn account. Thus, you should spruce up your LinkedIn account and set up an email dedicated to investors.
6. Know Your Value Proposition
When pitching to investors, they only need to know one thing: Why should they invest in your startup?
The answer is in your venture’s unique value proposition.
This should be evident on your website, IR content, and PR and marketing campaigns. And then you can spell it out on your website’s About Us section.
Think of your About Us and IR pages as your elevator pitch. Your unique value proposition should be condensed and definitive within these pages. Together, your branding and unique value proposition will give investors a full view of who you are and why they should invest.
7. Develop A Robust Lead Capture System
From a marketing perspective, your investors are like your leads. Hence, you should have a system that will capture and nurture these investors.
Your lead capture system can start with your investor relations content. From there, you must have a form wherein they can show interest and leave their contact details.
It will also help if your IR page contains your contact details. That way, a potential investor can reach out to you directly and schedule a pitch.
Do You Really Need Investors for Your Startup?
You may fund your startup from your pocket, but it may not be enough to scale it and grow it. This is where investors come in.
Moreover, there are compelling reasons you need an investor:
- Funding. Your investors are here to help fund your startup. And you can use the funds to grow your business.
- Connections. Besides funding, your investors can also introduce you to other VCs who are willing to invest in startups like yours.
- Advice. Investors are entrepreneurs. It is just that they have more experience in making a business grow, and they can impart their learnings to you.
- Confidentiality. Investors receive multitudes of pitch decks and financial data, and it is their job to handle such information in good faith. Otherwise, this can lead to legal and ethical issues.
However, do not expect them to flock to your venture. You will need to do something to let them know that your startup exists and you need financial help.
This is where digital marketing practices can be helpful. To recap, here are seven digital marketing tips you should keep in mind to attract investors to your startup:
- Identify relevant investors
- Have a search engine-friendly website
- Publish investment relations content
- Leverage digital PR
- Maximize your social media channels
- Know your value proposition
- Develop a robust lead capture system
By following these tips, you can have a competitive edge against other startups vying for investors’ attention. And you can scale up your venture if you are successful in securing a fund.