How to Find Investors for Startups
Startup investors evaluate market size, traction, and team. VCs require $1B+ markets and scalable models. Angels accept earlier stages but still need validation. Wrong investor type wastes months.
Types of Startup Investors
Venture capital: Seed through Series B. Require $1B+ market and scalable model. Check: $500K-$20M. Timeline: 2-4 months. Won't fund local businesses or low-growth industries.
Angel investors: Pre-seed and seed. Accept more risk than VCs. Check: $25K-$500K. Provide mentorship alongside capital. Work for earlier stages.
Accelerators: Y Combinator, Techstars. Provide $20K-$150K plus mentorship. Highly competitive (under 2% acceptance). Best for early-stage with growth potential.
Business investors: Different category. Evaluate revenue and profitability, not growth potential alone. See our business investor guide.
What Startup Investors Evaluate
Market size: $1B+ TAM (Total Addressable Market) for VCs. Small markets limit growth and exits. Some angels accept smaller markets for niche opportunities.
Traction: User growth, revenue growth, engagement metrics. Seed VCs accept less than Series A. No traction = limited options.
Team: Relevant experience, execution ability, complementary skills. First-time founders need stronger traction or exceptional backgrounds.
Unit economics: Series A+ requires proven economics. Customer acquisition cost, lifetime value, gross margins. Prepare these numbers.
Where to Find Startup Investors
Crunchbase and AngelList identify investors. But most deals close through warm intros. Cold: 1-3% response. Warm: 20-30%. See our outreach guide.
Demo days: Y Combinator, Techstars provide direct investor access. Highly competitive but effective.
Industry events: TechCrunch Disrupt, SXSW, Web Summit. Work when prepared with clear pitches and materials.
