How to Find and Attract Business Investors

How to find a business investor

Before seeking a business investor, start operations on a small scale. All you need initially is a business concept, a product or service and a plan. Prospective investors will want to see market demand for your offering and proof that you can be profitable before giving you their hard-earned money. Ideally, you should have at least one year of operational track record.

Fei Chen, entrepreneur, investment expert and founder and CEO of Intellectia.AI, noted that investors are drawn to businesses that solve real problems in scalable markets. 

“A good value proposition, well-defined business model and measurable traction, such as revenue growth, customer growth or partnerships, set a firm apart,” Chen explained. 

Here are five ideas to help you search for a business investor:

• Work with friends and family: Seeking funding from friends and family can be the best option for getting your business up and running without proving yourself to an outside investor.
• Network in your community: Cities and small towns may have business initiatives aimed at empowering local entrepreneurs. Look for local business leaders and investors, connect with pro-business organizations and reach out to influential community members. “Network relationships are also valuable — building relationships at pitch events, accelerators and industry conferences increases visibility and credibility,” Chen advised.
• Work with a local bank for funding: Depending on how quickly you want to scale your operations, you can apply for a business loan from a local bank to build community relations and explore funding options.
• Seek out angel investors: If you’ve exhausted earlier funding options, your startup may be ready for angel investors or other private investors in your industry. Research regions where your industry is thriving and connect with local business leaders and angel investors there.
• Work with venture capitalists (VCs): Finding venture capital is usually the final stage in a new company’s funding journey, but it isn’t necessary for every business. If you run a stable, successful small business, you may not need VC funding. However, if you have a scalable business idea that requires significant capital for rapid growth, VCs may be a good fit.

How to attract an investor

It’s easy to get a general idea of how to find funding, but attracting the right investors and perfecting your business’s sales pitch can be a major challenge.

Elizabeth Gore, co-founder and president of Hello Alice, recommends rigorous planning to blend a powerful business story with a compelling offering. 

“Know your numbers forward and backward, then get ready to tell the best story that only you can share,” Gore advised. “What makes your idea stand out? How is it different from competitors already in the space? What’s your growth plan? Be prepared with answers to those questions and show excitement about your idea to take investors along with you.”

When considering how to attract investors, keep the following best practices and advice in mind.

Develop your company mission.

As part of your business plan and general business growth, you need a company mission statement to build around. Investors want to know your “why” — the reason you think the world needs your product or service. You should be able to communicate what problem your business solves in one or two sentences. If your mission or goals are too complicated, you risk losing both investors and customers. A clear explanation of your business’s value is essential to success.

Potential investors are like business partners — working with like-minded individuals is key to a successful relationship. Investors with a large enough stake in your company will want their voice heard — especially when equity is on the table — so shared values and a shared mission are crucial.

Tell a compelling brand story.

Telling your brand’s story can help you stand out when seeking investors. Investors aren’t just backing a product — they’re buying into your mission, vision and the people behind it. A strong narrative builds trust, shows where you fit in the market and helps make your long-term potential feel real.

Aleya Harris, CEO of The Evolution Collective, helps companies shape their narratives to boost valuation when seeking investment. She emphasizes that investors buy into why a business matters just as much as what it does.

“Investors are not just funding products; they are funding potential,” Harris explained. “Instead of overwhelming them with numbers and technical details, businesses need to tell a compelling story about their mission and market opportunity.”

Harris advises creating an investor pitch that frames the company’s journey in a way that resonates emotionally while proving its viability. “The best approach is to craft a founder-led narrative that establishes the problem being solved, the company’s unique position in the market and a clear vision for growth,” Harris added.

Harris also emphasized the importance of helping investors connect personally with your story and the potential impact of your offering. “The pitch should paint a picture of the future, showing how investment will drive success,” Harris explained. 

Take as many meetings with potential investors as possible.

Finding the right investors means meeting with as many people as you can. Accept any opportunity to talk. Multiple meetings will help you hone your business’s sales pitch, learn how to read potential investors and decide who would make the best partners.

The funding process often comes with rejection and judgment as you try to determine whether an investor is offering a good deal. Taking as many meetings as possible will increase your chances of finding funding from the right sources.

Create a compelling pitch deck that investors can’t ignore.

When presenting your idea to investors, you’ll likely be asked to create a presentation around a pitch deck. A pitch deck quickly outlines your plans and gives investors the highlights of your business opportunity.

“A great pitch deck is not a collection of data points; it is a structured narrative that guides investors through a compelling journey,” Harris explained. 

According to Harris, effective pitch decks: 

• Open with a strong hook that immediately captures attention.
• Present a market analysis showing why now is the right time for investment. 
• Define what makes your company different.
• Present financials and a growth plan illustrating a clear path to scale.
• End with a strong call to action.

Uladzimir Seuruk, founder and CEO of Cata-Kor, recommends keeping your pitch deck attractive and succinct. “It should describe the challenge, your solution, the market opportunity, the business model, the financials and the team behind it,” Seuruk advised. “Have clear charts, bullet points and solid data to retain investor interest.”

Michael Khoury, CEO at Go Vertical ICM, sees a pitch deck as a story of triumph. “When crafting your pitch, nail down your IP plan, cost plan and go-to-market strategy so investors see a data-driven business case, not just an idea,” Khoury explained. “That means validating the market, proving you can produce at scale and showing how you’ll monetize.”

Keep your pitch deck concise and clear — no more than 10 to 15 slides. If you’re presenting to investors, practice answering questions in advance. “Practice your pitch on others [and] ask for criticism and questions so you have all the answers ready,” Seuruk added.

Prove your idea has merit.

Interested investors will want evidence and validation of your concept. “All investors want to see a big market, great idea and fantastic team,” explained Andy Cwik, co-founder and CEO of hubub. 

Here’s what the experts advise showing investors to prove your idea has merit:

• Key metrics: Harris suggests sharing three primary metrics with investors:
  • Revenue trajectory: Shows a sustainable path forward
  • Customer adoption and retention: Proves your offering solves a real problem.
  • Scalability: Shows investors how they can multiply their investment as your company generates and sustains growth
• Financial viability: In Seuruk’s view, revenue, profit, customers and market size matter most to investors. “Investors want to know your business is financially viable or can become so,” Seuruk said. “Real customers, sales numbers and a proven record of sales forecasts go a long way.”
• Minimized investor risk: Khoury advises startups to minimize investor risk by clearly outlining their unit economics, product-market fit, time-to-market and competitive advantage. “Show the cost of production vs. projected revenue, actual traction with early customers or preorders, realistic timelines for manufacturing and distribution and why your solution can stand out long-term,” Khoury advised. 
• Strong team: Outlining your team’s abilities is also key to legitimizing your venture’s potential. “The team is the most important factor in early-stage startups, as nearly everyone has ideas, but few people can execute on those ideas and, more importantly, have the perseverance to see it through,” Cwik noted.
• Manufacturing and development plan: Khoury also emphasized the value of showing your methodical approach to product development and manufacturing. “Founders should aim to be venture capital-ready by building functional prototypes, ensuring regulatory compliance and developing go-to-market strategies that emphasize concrete ROI [return on investment],” Khoury advised. “With a working prototype, traction evidence and a path to commercialization, your business becomes very desirable to investors.” 

Be prepared to negotiate confidently to secure a deal.

Seuruk advises being self-assured but flexible when approaching investment negotiations. “Investors want confidence,” Seuruk noted. 

During negotiations, there are two competing interests. You want as much funding as you can get — while giving up as little equity as possible — while the investor wants to offer the least amount of money for the biggest stake in your business. 

Here’s how to approach the deal with confidence:

• Know how much you need: Before negotiations begin, be clear on how much funding you require and how you’ll use it. Ask for too much and you risk losing credibility. Ask for too little and investors may demand a larger stake if you return for more funding.
• Know how much equity you’re willing to part with: Decide how much equity you’re comfortable parting with, your ideal company valuation and the terms you’re willing to accept. Ask for more than you need but be prepared to negotiate and meet in the middle.
• Be prepared to walk away if necessary: Chen advises founders to negotiate carefully, even if they’re eager for the investment. “Preparation and self-confidence are most crucial in negotiations,” Chen emphasized. “Founders should understand their valuation, be direct on terms of funding and be prepared to walk away from terrible deals.”

8 types of business investors

As your business grows, it’s best to move from small to large funding sources. While this order is not set in stone, it’s a good general focus when considering various types of business investors:

1. Friends and family: Pitching to friends and family can be a great way to get your business off the ground, especially if you’re a new or emerging business.
2. Crowdfunding: Like friends and family, crowdfunding is a good early source of funding. When combined with money from family and friends, crowdfunding can help get your venture started.
3. Traditional bank loan: Once your business has some operational history and backing, consider pursuing one of the best business loans and financing options. Banks require extensive documentation and financial information before issuing loans, so be prepared to show a clear financial picture. 
4. Angel investors: Contacting angel investors is a good early funding step. “Angel investors usually come in at the very early stages of a startup, often before there’s even a product or a proven market fit,” Seuruk noted. Look locally first, then move outward until you find private angel investors.
5. VCs: Once you have some serious backing, pitching to VCs can be a great way to acquire large amounts of money to scale your business. “Venture capital … is for companies that have already found their market fit and need money to scale quickly,” Seuruk explained.
6. Corporate VCs: These are typically large companies that invest in smaller businesses with complementary products or services. “If you need strategic partnerships, industry knowledge and networking, then corporate venture capital is perfect,” said Seuruk. In addition to funding, they often offer access to their distribution and marketing channels, helping accelerate growth — especially if you’re targeting similar markets. 
7. Private equity (PE): PE firms typically invest in mature businesses that are already generating strong revenue. In exchange for significant funding, they often seek a controlling stake and aim to drive aggressive growth or restructuring. “Private equity generally targets more developed companies in need of expansion capital or restructuring,” Chen explained. 
8. Accelerators: Accelerators are a great way to achieve profitable growth. Some provide funding options, but most connect you with seasoned startup veterans who can give you advice on finding funding, developing your products and building your organization. Accelerators aren’t typically a primary funding source but knowing how they can benefit your startup is essential.

Benefits of business investors

For Chen, truly successful investing goes beyond funding to provide strategic guidance, network contacts and credibility. “Networked investors provide access to big partners, subsequent rounds of capital and talent acquisition,” Chen noted. “Successful investors are active mentors and growth strategists and will not let businesses fall into the usual pitfalls.”

Here’s how investors can give your business a significant boost:

• Immediate access to cash: Use investor capital to hire the people you need to grow, spend on marketing you need to attract new customers, invest in product development exercises and more.
• Valuable mentorship and advice: Many investors have grown and sold businesses over decades, building up unparalleled banks of experience you can tap into. They can offer you practical advice, share their insights and help you avoid costly mistakes that would have taken you years to learn.
• Access to powerful networks: Your investors’ contacts are often as important as their capital. Their network can help open doors for your business by introducing you to strategic partners, suppliers, customers and even other investors who can support your growth further.
• Credibility: Having a recognized and respected name backing your business advertises its potential to the world. Thanks to your association with your investor, customers and suppliers will be more willing to deal with you.
• Faster scaling: Growing businesses without running out of cash is a challenge. There’s a period when fixed costs shoot up and sales won’t cover them. Access to an investor’s cash and experience de-risks many of the dangers of scaling a company.

Gore emphasized the value of cultivating a meaningful relationship with your investors. “You can learn so much more from them, especially if they have a wealth of experience working or investing in the sector your business lives in,” Gore said. “They can also introduce you to potential partners, customers or other investors who can all lead to the success of your business.”

The right investors are partners

Choosing the right investor isn’t just about funding — it’s about finding a partner who believes in your vision and can help you grow. Yes, you may give up some of your business, but the right deal can take you further than you could go alone. Would you rather own 100 percent of a $2 million business or 75 percent of a $10 million one?

Not every investor will say yes — and that’s OK. Rejection is part of the process. Keep your focus on the next opportunity and come back to your mission when things feel off-track. That’s what will carry you forward.

If just one investor says yes out of 50, that’s still a win. You only need one partner who sees what you see.

Jennifer Dublino contributed to this article.