If you’re wondering how to find investors for a startup, you’re not alone.
Nearly 40% of startup failures are a direct result of an inability to raise new capital, according to CB Insights. Some founders bootstrap their way to unicorn status, but that’s not always possible. For most startups, finding investors is a must — not only for capital that supercharges growth, but also for the expertise and industry connections that spur sustainable scaling.
It’s not easy, and the competition for venture capital funding is only getting tougher. VC firms received 11% more pitch decks in Q2 of 2022 than they did the year prior, yet interacted with them 7% less, according to DocSend.
It’s possible you’ve dialed every number in your cell phone, attended a dozen mixers and used up all your LinkedIn Premium connections trying to find investors for your startup. These efforts can certainly lead to funding conversations, but shouldn’t there be a better, faster way to narrow down your search?
How to Find Investors with York IE Fuel
The steps to find investors for a startup are:
- Search by location
- Filter by market and stage
- Research each firm’s previous investments
- Create a watchlist to monitor potential investors
York IE Fuel makes the venture capital hunt easier with its Investor Research tool. Whether you’re turning over every stone looking for initial funding, or just seeking to add a new complementary skill set to your board, Fuel helps you find the right investors to work with. You can search for firms that are active in your location, or look for those that tend to work with startups in your stage and market.
To start using the Investor Research tool, navigate to the Advanced Tools tab on the right side of your Fuel homepage. Select Investor Research, which is right between Podcast Research and Social Ideas.
You can also access the tool by scrolling down to the bottom of a company’s profile page. Once again, look under Advanced Tools.
Find Investors for Your Startup
1. Search by Location
To begin, you’ll need to filter investors by location: city, state or country.
Keep in mind, the location filter helps with finding investors that invest in companies based in this location. If you start your search in Boston, for example, you might find an investor based in California or India. That just means that they’ve deployed capital to a Boston-based startup.
2. Add Filters
Now the fun begins. It’s time to narrow your search. Click the More Filters button next to the Search button. You’ll now know how to find investors for a startup based on four criteria:
- Markets: investors that have put capital towards a certain sector (FinTech, cybersecurity, etc.)
- Investment type: Investors that have been involved in a particular round or stage (Angel through Series E)
- Companies: Firms that have invested in a particular company
- Collaborative investors: firms that have worked with another specific investor of your choosing
3. Search for Startup Investors
Hit the Search button and you’ll see information on up to 10 investors that match your search criteria. If you search for Series A investors in Boston, for example, all of your results will be investment entities that were involved in a Boston-based company’s Series A round.
On the left side of the screen, you’ll see basic information about the investor: company name, slogan, location, top markets and links to its website and Fuel company profile.
4. Dig Deeper
Under the Investments tab on the right side of each result, you’ll find valuable information for your investor search.
You’ll see a matching percentage — the percent of that investor’s involvement that falls within your criteria. Fuel also tells you how many rounds that investor has led, as well as the average round size.
Additionally, you’ll find information on the three most recent investments by that investor. These three rounds don’t necessarily match your criteria, but they do give you insight into recent activities by your potential new VC partner — including collaborative investors that also participated in these rounds.
Switch over to the People tab to see which investors from the firm to contact, along with their LinkedIn and social profiles. (Note: This tab will only be populated if the firm lists its contacts online.)
5. Create a Watchlist of Potential Investors
Now that you’ve found a pool of potential investors, you can click the Create Watchlist button to easily track your new targets in one place. Stay up to date with these firms’ latest investment activities so you’re arming yourself with the market intelligence you need.
Learn How to Find Investors and Make Fundraising Easier
Founders and early-stage employees have a lot on their plates: new business, building the product, recruiting new hires, etc. Finding investors on top of all of this can be overwhelming.
Fuel’s Investor Research tool offers a way to streamline the process, so you can spend less time doing cold LinkedIn outreach and making hopeful trips to in-person startup events. Target investors with a history of investing in your location, market and stage, leaving more time for other essential startup scaling activities.
Sign up for Fuel and start finding investors for your startup today!