How to Find Investors for startups in Canada

Having a game-changing startup idea can be the most exciting thing in the business journey of an entrepreneur. But what goes next, is a little (not so) exciting part, isn’t it? Because now that you have the idea, you’d find it difficult to calm yourself, flooding with the energy to begin the process and to start jumping into the journey to fetch funds for it!

But, before you do that, you need to strategize some things for your business journey, that would not just save your time and energy, but will also indicate if there is a scope of introspection before you hop onto the next big step of finding investors for a startup!

First things first! Ask yourself ‘why would the investors pick your startup’?

The most crucial part of getting startup investors on board will be the process of pitching your business to them. But if you have some doubts about certain aspects of it, then you might get into a situation where you look baffled while you are fundraising for your startup and might turn the deal into something that’s not in your favor.

So, here’s a quick checklist you should consider and prepare for before you walk in to pitch your idea to investors for your startup:

• What is the uniqueness of your idea? How does it stand apart from the crowd?
• Is your idea strong enough to survive what your existing competitors are doing?
• How much is the feasibility of a startup idea?
• Is your startup idea game-changing or future-ready?

What are the 5 ways to find investors for startups?

If you have already mentally prepared the answers to the checklist we shared, now it’s time to get straight into 5 ways of finding investors for startup

1. Reach out to Private Investors

Of all ways of finding investors for your startup, the probable best idea could be reaching out to private investors that might like your pitch and idea and would be up for fundraising your startup.

Now, When talking about private investors of startups, the two main categories comprise of i) Angel investors and ii) Venture Capitalists

i) Angel Investors:

One of the best ways to level up your startup is to find an Angel investor for a startup. Angel investors are basically wealthy and already established entrepreneurs that have a huge net worth and abundance of resources that can fund your startup. This funding happens in exchange for a fixed percentage of share in your business, along with some key power for major decision making.

Angel investors can be the best option to seek funds from, as they are keener into investing in growing startups even without an established base. The best way to find out about them is to dig into resources that have well-structured data of your potential angel investors for startup. One such example of Angel investors for Ontario can be Angel Investors Ontario.

ii) Venture Capitalist:

Venture capitalists are the ones who invest on behalf of the investors, and it doesn’t include their own monetary investment at all. However, they come into the picture only when the startup has performed well to an extent, has considerable revenue generated, and has some solid action plan to expand. Thus, this can be a great option to consider for expansion but might not be an ideal one in the budding stage of finding investors for a startup.

2. Opt for Government Programs to get funds

The Canadian Government, like any other country, runs some programs that lend money to deserving founders and they end up fundraising the startup. The requirements to qualify for it can be subjective to the state and the program one is opting for. But with proper research, one can find out the policy that would be the best fit and can fetch funds from the government at lower interest rates.

Programs like Atlantic Innovation Fund (AIF) or Innovation Assistance Program(AIP) can be good examples of the same.

3. Raise funds through crowdfunding:

One of the other widely popular and used methods of finding investors for startups is crowdfunding. This is an alternative way of fundraising required capital for a startup, but from individuals who might not be rich enough to fund the entire amount all by themselves but can invest some amount in exchange for equity from the startup.

This method, over the years, has been proven like a boon to the ones who do not wish to approach the private investors on the first go Hence, Some options one can consider for crowdfunding in Canada are:

• Kickstarter
• Indiegogo
• Crowdfund
• GoFundMe

4. Leverage social media and your personal branding for fundraising

No matter how much importance is stressed upon the idea of the startup, if the one who is the face behind it, fails to create the trust and prove his or her worthiness to the startup investors, then there are most likely chances of the deal to remain uncracked.

The best way to turn down this hurdle can be by creating a personal brand on social media and leveraging the power it has of networking with people even on the farthest point on the globe. When you create content and build authority on the media platform, it enables people to know how knowledgeable you are. It helps them trust your work even more for domains of decision making and management too.

And when you simultaneously also network with like-minded people around the globe, it can fetch you some bang on opportunities and help you meet the potential investors for your startup. With that network, you can also conduct online or offline fundraising events after you have created enough awareness of your potential startup and can attract investors for startups and pitch your proposal to them in this way.

If you feel you are more into the business side and would want to outsource the branding part and focus on making more money, then Kedden has the best service options for you for strategy, branding, and marketing solutions. Find out more about it and book a 1:1 Free consultation call to explore the scope of expansion of your business with Team Kedden.

5. Participate in regional entrepreneurship competitions.

Needless to say, shows like Shark Tank and Dragons’ Den have very well-created awareness about how one can make the most of fundraising for startups at competitions held on different levels. These are the ones that are telecasted over the television. However, apart from this, there are also a lot of others that are held at provincial or national levels too where one can pitch the proposal to startup investors seeking business ideas that they would find most worthy.

It is a no-brainer that looking for investors for a startup can feel taxing or overwhelming, to begin with. But we have tried our best to cover the points that can be your hands-on guide to crack the deal and get the ball rolling.