How do you find investors?

What are the different categories of investors?

There are many different types of investors who can finance your business project, whether it's a start-up or a buy-out.

The first investors in your business project: love money

At the start of a business financing project, the search for investors is a major challenge. This is precisely the right time to mobilize your "love money"! This source of financing comes from your close social circle: family, friends, colleagues... It can take the form of a loan or a donation.

Contrary to popular belief, word-of-mouth alone is not enough to find this type of investor. Crowdfunding is an effective way of multiplying your chances of attracting the first investors for your startup. You can present your business idea to friends of friends, highlighting your motivations and storytelling to encourage them to believe in your business project.

There are a growing number of crowdfunding platforms specialized by investment sector. The golden rule is to choose the crowdfunding platform that best suits the nature of your business project.

Venture capitalists

For a budding company such as a start-up or a very small business, it's often a case of finding the right investor. Venture capitalists step in once the business project has been launched, but before you've reached financial equilibrium or achieved positive results. Unlike other investors, they don't expect dividends.

Business Angels are a type of investor who are often involved in the launch of a company's activities. They contribute financially and offer their skills, network and know-how to help the company get off the ground.

Development capital investors

Development capital investors play an essential role in the growth of your business once you've launched it. At this stage, it's time again to look for investors to support your expansion. These investors are less inclined to take risks, making them easier to find. The capital they inject is specifically earmarked for your company's development, and in particular for expanding your market presence.

What are the stages involved in raising the first funds?

Obtaining financing from investors takes time and rigorous preparation. In most cases, entrepreneurs need to put together a complete dossier, taking into account the legal, financial, tax and accounting aspects of the business. Working with a lawyer specialized in corporate law or a chartered accountant makes it easier to draw up a solid business plan.

In the case of a start-up or a company in the process of being established or created, a good domiciliation address on the financing file can make all the difference with investors. A company like SeDomicilier, which specializes in company domiciliation, can help you in your financing procedure.

Above all, an in-depth knowledge of the company's product and its development prospects is essential. This is why the business plan plays such an important role in your presentation to investors. It must be clear, readable and capable of demonstrating the viability of your business creation project. Prepare your pitch carefully and anticipate any questions investors may have.

The pitch deck, a document of around 20 pages, summarizes the key points of the business project to attract the financial interest of investors. It should be concise and captivating, suitable for a rapid presentation lasting just a few minutes. Use your business plan and financial projections over 2 to 5 years to accurately estimate the amount to be raised.

Identify all the company's needs based on the cash flow plan, income statement, projected balance sheet and financing plan. Finally, you also need to forecast the company's capital requirements over several years to ensure the success of an effective fund-raising campaign.

Choosing the right investor for your business: what criteria should guide you?

To successfully raise capital for your company, it's essential to identify and contact the right investors. Early in the company's life cycle, it's advisable to turn to business angels and venture capital funds. Both types of investor are more willing to take risks in the early stages, with high expectations in terms of return. Growth investors, on the other hand, prefer companies that have already achieved commercial success, with a well-established business model or product/service.

If your company has already embarked on a growth strategy, especially internationally, these are the investors you should certainly turn to. It's important to note that finding an investor is not just a matter of obtaining funds, but also of finding a partner who can support your company's growth through :

• experience,
• expertise,
• its vast network.

Some investors have themselves been successful entrepreneurs and executives, so in addition to funding, they can provide valuable advice to your startup. In particular, investors with experience in business deployment and international expansion are particularly beneficial during a company's growth phase.

Presenting your business project to investors: tips for making a good impression

Getting ready to defend your business project in front of investors? Don't panic! You need to exude confidence without sounding pretentious. The key to this stage of the financing process lies in the entrepreneur's ability to present his business ideas and the strengths of his investment case concisely and clearly, without getting bogged down in details.

Avoid the use of unnecessary terms and use storytelling techniques to make your presentation captivating and easy to understand. This way, your business idea will remain positively anchored in the minds of potential investors. Another indisputable asset is allowing investors to experience and test your product. This can boost confidence in your idea and your company.

To impress professional investors, focus on your company's services and figures. Nothing is trickier than not being able to provide your own company's metrics during the presentation. Don't forget! Most business angels and private investors have entrepreneurial experience.

Answer questions openly and clearly, and see feedback (even critical feedback) as a learning opportunity. Adapt your business plan and pitch deck accordingly, polish your presentation, and be even more persuasive at your next meeting with investors.