How to find investors to get business capital for beginners

How to find investors to get business capital for beginners

In building a business, one of the preparations is capital. The existence of capital is the driving force when a business has been running. When the business is not yet running, capital can be an important instrument to realize the extraordinary ideas that you have in your head.

There are many ways to get business capital. For example, you can start by saving money, selling assets, borrowing from banks, or even looking for investors.

Of all the options for obtaining business capital, perhaps many think that finding and getting investors is the most difficult.

This may be true in certain situations. But in other cases, you will be surprised how easy it is to find investors. Especially if you know how to find investors.

4 Ways to Find Investors for Business Capital

How to find investors to get business capital for beginners

The following are some of the most effective and powerful ways to find and get investors for businesses.

1. Getting Investors through Peer to Peer Lending (P2P lending)

You can get business capital loans through a pool of investors in peer to peer lending (P2P lending).

P2P lending is a new alternative that entrepreneurs can take advantage of, to get capital loans through a platform that brings together entrepreneurs and investors. This method is widely used to help develop small and medium enterprises (UKM).

So the way P2P lending works is first of all loan applicants (business actors) will apply for loans through an online site platform. After making the application form and filling in the data, the platform will then check the borrower's data and then forward it to the lender (investor).

2. Looking for Investors with Venture Capital

Venture capital is initial capital provided by private investors or specialized financial institutions to fund young businesses. For example, you are just starting a startup business.

The source of finance from this venture capital company is usually obtained from a collection of pension funds, capital from insurance companies, endowments, or wealthy private investors.

Businesses that get venture capital injections are usually businesses that are considered very potential and can develop in the future. Or brilliant new ideas that will one day become big business.

3. Acquiring Investors with Equity Crowdfunding

Equity crowdfunding is a process of raising or raising funds intended to finance a business from a number of investors using an online platform.

At first glance, equity crowdfunding does have something in common with P2P lending. What distinguishes it is that if P2P lending lends funds to business actors, then equity crowdfunding is funding the business in the form of stock investment (stock investors).

In simple terms, the way equity crowdfunding works is to bring together investors or investors with recipients of capital (business actors who need capital). Later, these investors will invest their funds in a business or project with a certain profit sharing system.

4. Seeking Business Capital from Angel investors

Angel investors are a way of looking for private investors that are carried out by startup entrepreneurs or other new businesses that have connections to people who have wealth.

As the name implies, which means angel investor, the investors of this angel investor are family, relatives, friends, or relatives of entrepreneurs who are short of capital.

Getting capital from this angel investor is indeed easy. First you must have a good business proposal.

Read also: 5 Types of Entrepreneurship That Changed the Way We Live

Of the four ways to find investors above, you can adjust your choice to the business conditions you are developing.

1 comment for "How to find investors to get business capital for beginners"

  1. This article furnished me with an abundance of data. The article is both instructive and accommodating. Much obliged to you for giving this data. Keep doing awesome. Business loans and financing

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