Startups often have one common issue: connect with investors and raise capital.
Running a business is not an effortless venture. Founders already have the burden of launching and running a company. At the same time, finding an investor to secure capital can be extremely challenging.
Fortunately, multiple online platforms have made their way across the web to help startups connect with investors, which solves one of the biggest challenges for new startup founders with a limited network. These platforms allow founders to spend their precious time creating something their customers love instead of chasing intros and looking for investors.
Today, we have created a list of online platforms that connect entrepreneurs with investors and vice versa. Add more.
Top Platforms to Connect With Investors:
OurCrowd (1) is an equity crowdfunding platform investing in startups worldwide. They have a community of more than 120k investors worldwide.
For startups, OurCrowd shares a 5-step procedure including screening, meeting with the OurCrowd team, due diligence, meetings with investment teams and committees before making the final decision. Once a startup is accepted in the initial four fundraising steps, it will move on to the final step. At this point, a startup will have access to investors and participate in multiple events.
FundersClub (2) claims to offer founders an unfair advantage via its innovative software and its global and powerful network of over 27k investors. Startups can gain access to a founder community where they can connect with other entrepreneurs and collaborate with them via online and physical events.
Founders can also gain mentorship via FundersClub in-house team members. These members have completed every step of the startup cycle, from launch to exit, multiple times.
The business model of FundersClub involves receiving a percentage of the investment profit. Notably, they will only change for a positive outcome of the campaign.
Even though the platform has limited eligibility requirements, reports suggest that they only accept 2% of applicants on its platform. FundersClub usually prefers startups at early-stage under Seed or Series A funding round. They wish to see if a startup has the potential for enormous growth before getting them on board.
Read Also: Challenges in Indian Startup Ecosystem
The startup investment platform (3), SeedInvest, offers founders access to over 500k investors. So far, they have helped to raise 300+ million USD for over 235+ startups.
Once accepted, there is no retainer from SeedInvest to startups. Instead, startups only have to pay a 10k USD flat fee at closing while SeedInvest pays all upfront costs. Notably, they are only charged for successful campaigns. Other fees include equity and placement fees. Again, startups are only charged these fees for successful campaigns.
SeedInvest also has a rigorous application process. Reports suggest that they accept only about 1% of all the startups that apply. Startups also need to have the minimum requirements before moving forward with the application, including MVP, minimum viable product, at least two full-time team members, and proof of concept. The platform also has a strong preference for consumer-based and technology businesses.
StartEngine (4) is an equity crowdfunding platform that helps startups secure capital.
The platform has a creative team that helps startups design their campaigns to attract investors from its community of over 500k people. In addition, startups also get access to account managers and a drag-n-drop feature to build a perfect campaign page.
StartEngine allows startups to set their terms with potential investors who can easily invest via ACH, credit cards, cryptocurrency, and bank wires. The StartEngine team reviews a startup based on team, revenue, customer engagement, previous funding, market growth, and marketing budget and assesses whether it will have a fair chance in crowdfunding.
StartEngine is among the best platforms to connect with investors for startups looking to crowdfund their raises. There are no listing fees, and the platform only charges 6% after a successful campaign.
Wefunder (5) is another platform for startups looking to crowdfund their capital. It has been in the arena for a long time and knows how to get results.
Startups don’t need any upfront payment to start their campaign and usually raise 20k to 50 million USD with Wefunder. Like most other platforms, Wefunder also only charges startups with successful campaigns. Their fee is about 7.5% of the total fundraiser, and they will also match the price if a startup manages to find a better deal somewhere else.
However, it only accepts only for-profit, US-based corporations, or LLC companies. Regardless, since there are no startup fees, you will lose nothing if you try platforms like Wefunder to connect with investors and raise your funds.
AngelList (6) is among the most popular out there when it comes to connecting with investors. The platform offers startups multiple opportunities, including finding the right talent, seed fundings, and angel investors.
Apart from investors, the platform also has a job board for people looking for a startup ecosystem. Startups looking for new talent can post job ads as well.
Startups can build their own network on AngelList via email invite or by connecting on other social media accounts, increasing their chances of getting funds. Startups can also use the platform as a search to find potential investors that can be a good match for them.
And since creating an account on AngelList is free, quick, and easy, there is nothing to lose for startups to use the platform to connect with investors and even search for new team members.
Read Also: New Age Startup Ideas for 2021 and Beyond
Investor Hunt (7) offers startups access to more than 90k venture capitalists and angel investors.
It offers startups four different plans; free, basic, pro, and premium, at 0 USD, 33 USD, 66 USD, and 112 USD, respectively, with corresponding access and features.
Investor Hunt’s database is filled with investors investing in multiple arrays of startups. Meaning, it won’t matter which sector your startup works in; there are high chances you will connect with investors you value.
And since Product Hunt has created the platform, there are assurances that you will get your money’s worth with Investor Hunt.
Foundersuite (8), founded by Nathan Beckord in 2016, has helped multiple startups secure more than 2.5 billion USD in seed and VC funds.
Foundersuite offers startups an opportunity to connect with investors with an impressive database of about 21 VC and over 100k strategics, family officers, angel investors, and more.
The platform offers affordable monthly subscriptions in different plans. Foundersuite also offers free ones, so founders can check what the platform is about, what it offers, and how everything works.
It also has an investor CRM where startups can check and follow up with their progress of investment research via a pipeline. Undoubtedly, it is among the best platform for startups looking to connect with investors and efficiently raise money. We know how time-consuming raising funds can be! And, the platform’s CRM pipeline will help startups save significant time and energy and divert them to other activities that matter, too (9).
Read Also: Can Indian Startups Compete Globally?
Crowdcreate (10) is a growth marketing service startups can use to connect with investors, accelerate their funding, and influence sales. What makes them different from their other counterparts? Their track record of securing over 133 million USD across 100+ successful client projects.
Crowcreate has built a network of more than 45k investors, influencers, and strategic partners over the years to help startups grow.
In short, Crowdcreate connects startups with the right investors that regularly allocate capital. It takes a 5 step process for startups to connect with investors on Crowdcreate.
- Identify: the platform uses machine learning to aggregate all major investor databases.
- Qualify: the team carefully chooses the most relevant top investors for your fundraising.
- Pitch: the team also writes customized pitches for your company that are A/B tested and proven from its track record of sending hundreds of thousands of outreach emails.
- Introduction: Startups can get on telephonic conversations with qualified investors for one on one interest and feedback.
- Optimization: Once a month, the team tweaks startups’ messaging and pitching techniques.
Notably, Crowdcreate’s services come at a hefty price, starting at 1500 USD a month to introduce startups to 500 investors a month. Not all companies can afford them, especially early-day startups.
10. Let’s Venture
Let’s Venture (11); an online funding platform that allows startups looking to connect with investors and help them secure seed funding, create online investment-ready profiles, and reach out to accredited investors.
In addition, it also helps startups refine their business plans and connect them to relevant mentors. Overall, Let’s Venture is committed to helping startups in their entire funding closure journey.
Founded in 2013, the platform uses its funding from angel investors to expand and add more global investors to its portfolio, apart from the nominal fees it charges from angel investors and startups (12).
MicroVentures (13) is a full-service investment bank with a powerful equity crowdfunding arm that caters to startups and accredited and non-accredited investors. Startups from a wide range of industries can join the platform. However, it strongly prefers consumer-facing startups such as sporting equipment startups or beverages or those with opportunities in high-growth niches like biotechnology and cannabis.
One point worth mentioning here is that MicroVentures has an unusually lively secondary marketplace that can offer early-stage investors and founders a possibility of an early exit. However, there is no guarantee.
IAN, or Indian Angel Network (14), is a network of angel investors primarily from India keen on investing in early-stage startups that can disrupt the market. The network’s members are some of the most prominent names in the Indian startup ecosystem with strong experience as CEO or a background of being successful serial entrepreneurs.
Founded in April 2006, the IAN members offer money to young startups and constant access to high-quality monitoring, their vast network, and inputs on strategies and execution.
Startups’ preferred criteria include high entry barriers, a complementary management team, scalable business, and a unique value proposition, either in service, process, or product in concept or implementation.
Gust (15) is pretty different from all other investment platforms we have discussed until now. Instead of performing as an investing network, Gust offers a SaaS platform with more than 80 angel networks, including SeedInvest, OurCrowd, and others.
Gust offers the tools accredited startup programs, accredited angel investors, and venture funds require. Whether you are a founder seeking to connect with investors, hire quality startup talent, an investor seeking a deal, Gust allows you to investigate individual offerings, track and review investments, discuss deals, and share your potential investments to others,
In addition, you also get access to a vast proprietary data library and videos to help you stay ahead in your space with the latest trends and predict future trends.
14. Mighty Cause – For Non-Profits
Might Cause (16) is among the best investment platforms for non-profit companies to secure capital because of its low cost and availability of a range of tools for free.
The platform was founded in 2006 to help non-profits secure money for their causes. The flexibility it offers for fundraising offers it an edge in the category for entities asking for donations. Mighty Causes has helped over 150k causes to attract the contributions they require to meet their goals.
It offers a range of campaigns, from peer-to-peer fundraising to giving days. It charges an average processing fee of about 1.2% of the money anyone secures using the platform, plus transaction fees. MightyCause provides a “starter” option without any additional cost, where people can secure money and build fundraising campaigns that are peer-to-peer, year-round, event-related, and much more.
Organizations also get the option to upgrade to the “full services advance plans,” a paid version that offers features for marketing, branding, and donor management for about 99 USD a month, with flexible cancellation policies.
Individuals can also use the platform to set up fundraising campaigns for their favorite organization.
Read Also: Top Investors in India (2020 Update)
15. GoFundMe – For Individuals
GoFundMe (17) is a versatile platform that helps people raise money for everything from personal expenses to keep a local business alive. It is a clear pick for personal funding requirements. It has a track record of bringing over nine billion USD in funds from over 120 million donations.
The platform, launched over a decade ago, has become one of the most effective fundraising platforms online. Its simplicity and success have made it among the best platforms for individuals to connect with investors or donors.
One can easily set up a GoFundMe page in three simple steps. First, you will need to build your campaign by offering the details of the amount you wish to raise. Next, tell your story, which can include videos and photos. The final step includes sharing your campaign with your contacts through social media, email, and text messages.
People can easily manage the donations they receive via the platform’s dashboard, where they can withdraw funds, send thank-you notes, and more. Compared to other similar platforms, GoFundMe doesn’t charge any platform fees. It only charges 1.9% processing fees and about 0.30 USD charge per transaction. There are also no limits or deadlines, which means one can choose to raise money for as long as they wish.
The platform also offers 24/7 support if people need any assistance in setting up their pages or have any queries.
We hope that the suggestions mentioned above have given you enough ideas on where you can connect with investors and secure funds for your business goals.
We understand that finding investors and raising money can be very challenging. However, it is equally tiresome if you don’t know where to look in the first place. Now that you know you have plenty of options to know where you can look, you can make your chances of finding the right investor for your startup even greater.
Moreover, when you already know where to find investors and what to expect from each platform, you can spend more time working on your offerings, business, and pitch.
Remember, the equity landscape is constantly evolving because of the regulatory uncertainty and volatile nature of the early-stage startup ecosystem. Platforms, even high-profile names like Indiegogo, who tried equity funding space for a while and then moved on, routinely enter and exit the space.
Therefore, we strongly recommend that startups and investors do their due diligence before launching or investing in a new offering on a range of available platforms to ensure they choose a reliable and stable vendor that meets their requirements.
And as what has always been on other aspects of any business, relationships between founders and investors are stronger when based on shared goals and mutual goals. Read our previous story on Saying “Yes” to Any Investor is Bad for Your Startup: Here’s Why to know more about it.
Connect with us if we have missed any platforms you know to help startups connect with investors and help them get the funding they require.