How Startups Can Use Marketing to Attract Investors and Fight Off Competition

As brand-new business ventures continue to rise globally, a digital marketing strategy is quickly becoming one vital factor in connecting with matched investors.

That said, one of the biggest mistakes that many fresh entrepreneurs make is seeking funds from any investor that actually bothers to listen. Desperate for a financial boost, most startup owners will market their brand or brand ideas without pinpointing what type of investors they want to bring in.

As many of them learn from their own mistakes, the right venture matched with the wrong investment platform or investor is almost always meant to fail. The conclusion? Before you board on your new marketing voyage to potential investors, we recommend using the right marketing tools to help you connect and engage with the right people.

Identify Investors Within Your Niche

One classic mistake that many new entrepreneurs make is begging for financial aid from any investors that listen to them. This often happens out of desperation since lots of startups ask for support within the shortest time possible without fully comprehending what type of investor they need. In the end, they happen to see their mistakes, but it might be too late. 

For the best outcome possible, make sure you undergo thorough research before showcasing your business to an investor. Try to make a point to find out valuable information about them, like what sort of niches they normally invest in and their investment budding. Once you’ve gathered enough info, you should begin to finetune your marketing approach and technique to include your pitch. 

What’s more, if your startup can afford, you can even organize and host themed events that attract investors. One of the most renewed investor-landing programs to arrange is a financial roadshow. They are ideal marketing tools meant to attract the best investment firms and investors. To arrange your first roadshow, make sure you have a team of well-prepared and skilled executives required to attract investors. Your team should typically travel – sometimes internationally or domestically – to meet with potential investors. 

Keep Leads Warm and Convert into Investors

Once the investor enters the website of a target business, digital marketing provides multiple ways of keeping in touch and then re-engaging with potential investors because they already look for a startup to invest in.

Once you’ve re-engaged with potential investors, convince them with:

  • Market research and input from outside experts

Regardless of how passionate you and your peers are about your concept, it doesn’t necessarily mean that they will come if you build it.

Research evidence from valuable sources such as Gartner Group, and spend more time with real customers and industry experts before calculating your prices and opportunity.  

  • A realistic revenue model and price based on cost.

With an implied intent to make money later, a free prototype doesn’t work with investors as it did a few years back. In 2020, it takes real financial power to sustain a business, with an edge in the 50% range and some reasonable metrics and milestones. Try to sell at least one at full price to a real client to prove your startup traction.  

  • Early customer testimonials and commitments. 

Excellent customer experience expectations in 2020 span the range from shopping, delivery, closing, usability to support. When you don’t have genuine customers yet, focus on a letter of intent, the pipeline’s size, and access to popular markets and distribution outlets.

  • Team Organization and preparation for sale up. 

Startups asking for funding without any credible financial and operational leadership will likely be refused.

Don’t think that customer-facing staff can be hired and trained at the last minute. Your strategy and milestones in the circumstances are the keys to achieving the outcome you expect.

We do not suggest that all these business factors should be perfect before you require funding or open the door for business. However, any active angel investor expects entrepreneurs to communicate a strategy and progress towards these elements, just as investors expect them to convey and understand all the elements of their solution.

Increase Reach Through Social Media 

If you’ve successfully pitched to a potential angel investor, the last thing you would want them to do is combing every social media platform searching for you. With that said, you have to take your time to provide your startup with an identity on social media – and in 2020 it is easier than ever to do that.

Ensure your startup website is regularly updated and optimized as such, your followers can view your content regardless of their device. What’s more, make sure that your website doesn’t take more than 1 minute to load. The reason? Internet users typically wait less than four seconds for a web page to load – when it takes more than that; they usually get bored and start looking for your competitors.

Your website must have thorough information that gives your potential angel the chance to get to know you more. And social media is a great way to boost your online presence, and you don’t even have to rely on every social network site – just the ones related to your brand.

Create Content People Actually Want to See 

In 2020, the only way to stick out on social media is to echo the content everyone else is desperately sharing. Simply put, you should create.

Regardless of whether you are trying to build your brand, find the right investor, or stand apart from your competition, genuine content is exactly what you’re going to generate.

Maybe it’s your research, original blog posts, or infographics.

Perhaps, it’s an outstanding snapshot of you and your staff during a team building. Either way, you should strive to post content that lures your followers to stop in their tracks. With a lot of noise going out on social media these days, you can easily make a goal from breaking through it and reaching the right investors at the right time.