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Where to Find Private Investors for Startup Small Business

By Edited Nov 20, 2015 0 0

Learn how to find private investors for startup small businesses.


If you're new in business, finding capital to finance your new startup small business can be a daunting task.

One of the hardest parts of starting a small business is finding investors to help pay for the business expenses while you try to grow the business.

As difficult as it may seem there are a lot of ways to find private investors to get your startup small business going.

Starting your own business can be an expensive process so finding private investors for a startup small business can provide your business with the funds needed to survive.

With the economy in the tank, it may seem impossible to find someone with enough extra money to get your business off the ground but trust me they're out there looking for opportunities to invest in.
investors for startup business

The following is a list of ways to find private investors for startup small business:

Lending Clubs:

An easy way to find financing is to use a lending club. A Lending club is a network of investors that are ready to loan money to people with good credit. Typically you can find rates equivalent to banks or better without all of the hassles that a bank gives you. This should be one of the first resources you try since it is often quick and easy.

Commercial Banks:

A great place to look is with your local bank. It can be very difficult to get an SBA loan, small business administration, or a private loan but it may be worth the attempt. Put a solid business plan together to show the bank that you are serious about your business. Even if you can't get approved for a loan this is a great place to start networking while looking for private investors for startup small businesses. The brokers that work at the bank tend to have connections with private investors and investor networks so make sure to ask around.

Partner:

If you can't find the money through an investor it may be worth trying to find a business partner to help fund your business. You can look for a business associate that wants an active part in what you are doing or someone looking to be a silent partner who is more interested in a percentage of the profit in return.

Similarly to finding a private investor you can look for potential partners at places like the Chamber of Commerce or Rotary clubs. Another great resource to find private investors for startup small businesses is look into meetup.com groups. There are a wide variety of groups all over the country.

Venture Capital:

Most Venture capitalists want to sponsor already established businesses but you may be able to convince them that your business is worth the risk. Even if they don't want to invest, they may be able to point you in the direction of someone that might. Just because it's unlikely that they will finance your startup small business doesn't mean that you shouldn't try. Often times you can make some really good connections even when you get turned down.

Angel Investors:

There is another group of investors out there called angel investors. Typically these are people with significant cash reserves lying around and look for startup small businesses to invest in. In exchange they typically require convertible debt or equity in the business in return. Be sure to research this group of private investors thoroughly before taking any money.


Finding private investors for a startup small business may seem difficult at first. What it essentially comes down to is networking. The more you get out there and promote yourself and your business the more likely you will find a private investor. Not only that but you likely will find customers along the way.

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