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How should I convince a startup investor that he should invest in my idea?

How should I convince a startup investor that he should invest in my idea? by @R44D

Answer by Raad Ahmed:

To convince a startup investor to invest in your idea, you’re obviously going to need to convince them that they can get a return on their investment. That can be done in a number of different ways and different investors are looking for different things. There are a lot of things that need to be done and it can be tricky. Your ultimate strategy is going to depend specifically on your startup and its strengths and weaknesses. If you haven’t yet, it is a pretty good idea to hire an attorney when you are ready to take on funding.

Before looking to bigger investors, it is really helpful if you can show that you are ready to take on investments by raising some type of seed funding or other lower level funding. It is generally easier to get a smaller amount of money from a greater number of people. At this level the funding can come from anywhere and usually includes people like friends and family of the founders. But, remember it can come from anywhere so be creative. Your first round of funding should be something like that but you probably won’t be able to raise all the money that you need.

If you have already taken in some outside funding and provided a return for those investors, then it will be easier to show bigger investors that you can do the same for them. A bigger investor will have bigger risk, so you can expect more scrutiny. Again, exactly what they are looking for will vary but you need to find a way to stand out among the many other startups that the investor will be looking at.

I would suggest hiring an attorney to help you at this stage. Trying to navigate on your own could be risky and an attorney can guard against that risk. If you are looking for an attorney to help you prepare to take on funding, you should visit LawTrades. The attorneys on our site are experienced when it comes to raising rounds and charge a fraction of what you’d face at a traditional law firm. Good luck and feel free to message me with questions!

How should I convince a startup investor that he should invest in my idea?