How to attract angel investors to fund your startup company or business idea in Nigeria
Do you have the finest company concept, but you simply lack the funds to make it a reality? So, this is no longer a concern. Unfortunately, the majority of people in Nigeria have no idea where to look for or how to contact angel investors. In this article, we’ll go through the top strategies for locating angel investors in Nigeria who are ready to back your business ideas.
If you’re an entrepreneur in Nigeria with a workable business concept, you’re really lucky to have made it past the preliminary screening. Because there are numerous company concepts in the idea cemetery, you should go on to the next stage, which is to secure the cash required to carry out the plan.
Places where you can meet investors in Nigeria
- Workshops and seminars
If they have the time, business owners and investors often avoid skipping seminars and workshops. While some courses are geared at participants in certain industry, others are accessible to a broad audience. Investors, particularly those working in the industry, are typically drawn to seminars or workshops. Try going and looking for investors. Even if you are unable to locate an investor, you will have gained knowledge. Win-Win circumstance.
- The internet
Investors are no different from the majority of people in the 21st century in having accounts on one or more social media platforms. Since the site is primarily for professional contact and connection, LinkedIn appears to be playing a leading role in the construction of Entrepreneur-Investor connect. To find investors nearby, you can utilize LinkedIn or any other social media site.
- Email Proposal
For some business owners, this strategy has been successful; for others, it hasn’t. Although gathering the emails of potential investors may result in one showing interest, this practice is not very common because some investors may view such emails as spam and choose to ignore them. If you want to try it, there are websites that offer the email addresses of angels and investors.
- Alumni activities
Have you ever gone to an alumni function at your college since you graduated? If not, you should go to the next one because you might meet affluent alumni or alumni who know investors who might be willing to fund your start-up. You both attended the same university, which puts you one step ahead because it gives you a common ground on which to build a connection.
- Networking Occasions
Events like these take place everywhere, allowing businesspeople from various industries to network with each other (for example, fashion, online, food, etc). (Health and Fitness, Delivery services, Media & PR, etc). You should keep an eye out for these events so that you don’t miss them, and you can discover the most recent information on websites like eventribe.com, eventful.com, meetup.com, and others.
- Website forums
Online forums are among the fastest ways to connect with investors. Many business owners have received start-up funding from an investor they met through an internet forum. The largest forum in Nigeria is called Nairaland, and many investors also use that forum. You should also register for other forums that are more organized and aimed at connecting investors and entrepreneurs, such as investorsvillage.com, investorshub.com, siliconinvestor.com, and others.
- Group of angel Investors
There are numerous investment groups, and the people that invest in these groups are known as angels (just in case you’ve never heard the word before). Investors now form organizations solely dedicated to supporting aspiring business owners. With a professionally produced business plan, one can approach investment organizations and convince an angel investor to fund the project. It is comparable to receiving a contract. Although there are more organizations than individual investors in Nigeria, one can do a rigorous and methodical online search for investment groups in Nigeria. Currently, Angelstartup.com is the only site that serves Nigerians.
How to attract angel investors to your startup in Nigeria
As the name implies, angel investors act as guardians for newly launched businesses. Financing for startups is commonly provided by high-net-worth individuals. They usually take on significant risk because they want a higher rate of return on their investment than the stock market can offer.
Here are some strategies for luring angel investors to your Nigerian startup.
- Start by projecting your traction and results rather than your need
Obtaining funding to launch, maintain, or grow your business can occasionally be very challenging. Both money and clients are necessary for business success. Instead of focusing on raising money first and consumers later, it is worthwhile to make an attempt to attract users or customers before you contact an investor. Create a strategy to land your first client that doesn’t require a significant amount of outside funding. Why is this such a big deal? It will be considerably simpler to obtain funding on favorable conditions (especially from non-institutional investors) if you have some traction first, especially if you are a first-time entrepreneur. Nothing demonstrates the viability of your idea to investors more effectively than having actual, paying consumers.
READ ALSO: Angel investors and how businesses can benefit from them in Nigeria
- Get in touch
For good reason, networking is frequently cited as the top piece of advice for aspiring business owners. Networking enables you to present your firm in a less formal, more informal setting.
Getting out and networking in your area’s startup and investment scene might be a terrific method to meet investors if you’ve been creating a successful firm. It initially appears like it would be a little awkward. Since you’re still trying to sell your company, won’t it turn off potential customers? No, not always. They will continue talking if it appears that they are interested in your company. The best outcomes often come from letting things develop naturally.
The organic soft-sell is an art, but when done well, it can increase the likelihood that investors will take your company seriously. After all, you’re not just presenting your idea; you’re also strategically hoping to sway their choice to invest by using the social capital you’ve strategically established through networking.
- Be prepared with a strong team before approaching angel investors.
When you contact investors, you’re pitching them on your team as well as your product or service. Instead of a single creator, angels and VCs frequently seek out skilled co-founders. Having saying that, don’t work with anyone. Selecting the ideal founding team for your firm is a tricky process because the wrong co-founders may ultimately be more damaging to your company than having none at all.
Finding the ideal co-founder, however, can greatly simplify the beginning process, even beyond luring investors. It’s challenging to launch a business by yourself. Having partners provides you individuals you can trust, which is really beneficial for your business.
- Emphasize the investor’s return on investment
Although investors may have faith in your company, their money is ultimately a means to an end since they need to recover their investment. Therefore, it’s critical to emphasize how their investment in your company will benefit them directly. When pitching an angel, venture capitalist, or your wealthy uncle, it’s critical to demonstrate how you’ll make a profit. Although it may be tempting to concentrate on yourself and your business plan, investors really want to know what’s in it for them. Explicitly stating how and when you will generate a return is the best method to stand out and attract attention.
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