There’s always been pretty standard, basic protocol when deciding to branch out on your own and start a new business. First, you put up the money upfront (either from your own pocket or a loan) for start-up costs. Then you work like hell to make your vision into a workable, functional, profitable reality. Next, you seek investors to alleviate the burden and to turn more profit rather than just treading water.
Things have changed. With the inception of the JOBS Act and Kickstarter campaigns taking over the startup landscape, the SEC decided to offer a way for new businesses to gain quicker access to funds starting this year. This is important because it shows that the SEC is willing to take the changing startup scene into consideration. Now that crowdfunding is so prevalent, the need for investors is diminishing and the SEC wants to make sure that the middle man isn’t completely shut out. Though there are still legalities to be considered before pitching to investors, the SEC making it an easier, more accessible process.
Forbes has a few tips on how newbies can market to this investor pool:
Leverage the power of social networks. LinkedIn is a great place to start looking for potential investors. Try posting enticing information or even direct messaging some of your connections.
Look into crowdfunding websites. Crowdfunding websites curate and position business concepts to a community of potential investors. If an investor is interested, his contact information is passed on to the startup. Research the crowdfunding sites that fit your industry best.
Utilize community events. Community and public events are excellent ways to solicit interest in an exciting business opportunity. By getting exposure at contests, trade events, and other public displays, you can generate investor curiosity.
Read the full Forbes article to see more tips for pitching to investors.
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Alexandra Saville (@CapitalistaBlog) is a PR & Media Outreach Manager. She has experience in the publishing and marketing worlds and started her own publishing company right out of college.