One of the major problems that arise in particular for young entrepreneurs is often the search for a source of financing for their company. ( fundraising ) Whether it is at the start of the adventure to simply set up a business, or when it comes to growing and developing, the need to find investors is felt.

Currently, there are many ways to find and call on investors, whether it is to set up a start-up or to create a modest project in a traditional sector of activity.

Before knowing how to find an investor, it should be understood that there are several types of investors. Once the most appropriate source of funding has been chosen, the hardest part remains to be done: meet an investor and succeed in convincing them that your project is worth selecting. This is what we are going to see, while remaining mainly in the field of new technologies.

The Different Types of Investors

The first means that comes to mind when we talk about the search for funds and investors is the famous “love money”. This English expression designates the funds that it is possible to unearth within its first circle: close family and old friends, for example. These are the people who are best able to help you raise funds to set up your project or your start-up. However, these people will certainly have demands as strong as Iceland Email Address professional or institutional investors, because they do not volunteer, a priori.

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They want to help a loved one, but also to review their money, with why not a little interest in the key, if possible. This option is interesting for beginners, because it allows you to break in the “pitch” (oral presentation of your project) that you will certainly have to present to many investors. You have an unstoppable argument in order to benefit from this “love money”: the French tax system makes it possible to deduct from its taxes sums invested in the capital of a company.

Take Advantage of The Opportunities Offered by The Institutional Bodies

Then, it is essential to take advantage of the opportunities offered by the institutional bodies present at the national, regional and departmental level. Bpifrance, a public investment bank, is responsible for helping the development of small and medium-sized businesses. This institution specializes in innovation loans, seed loans and it offers several financing schemes as well as specific banking products for businesses, including the famous CICE (tax credit for competitiveness and employment).

One of the types of investors that most young entrepreneurs dream about is surely the angel investor, a term modeled on the romantic and evocative English expression “  business angel s”. These private investors are often entrepreneurs who have made a breakthrough and who wish to set foot in the stirrup of young start-up creators, share their experience and of course earn money. Be careful, it is important to find an angel investor with whom you are likely to get along with and associate with, because his investment in your business also means a loss of power and decision in return. This is why it is best to negotiate with people who have the same business interests as you.

For larger companies, private equity firms may be an alternative. These companies have the capacity to raise considerable funds, of several millions of euros which will be used to acquire shares in the targeted company. A few years later, they retire by making a capital gain with the resale of these shares. Obviously, this type of investor is difficult to convince and only invests in projects with high potential.

Finally, there are the traditional banking institutions. Banks are notorious for not taking reckless risks, so you absolutely need to present them with a solid case with solid collateral to get a bank loan.

Concrete Ways to Attract Investors.

Prepare a perfect business plan
Preparing a flawless business plan is the foundation. This essential document must present all the quantified elements which show that your company can hold the road and that it will be viable. Many indications that will help investors perceive potential should be included, such as a factual presentation of your product / service, of your team, a precise and dated action plan, a strategy, the description of the market in which you are operating. hire and what sets you apart from the competition, the specifics of your product or service, sales forecasts, cash resources.

A major element that young entrepreneurs looking for funds frequently overlook is the funding criteria dictated by most angel investors looking for projects with minimum investment amounts, minimum rates of return after two or more. three years, for example. These constraints, you must know them and incorporate them into your business plan. In addition, entrepreneurs who are not very comfortable with this type of exercise should not hesitate to be accompanied by an expert or a business creation advisor in order to prepare a business plan that will meet expectations. investors.

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