When it comes to getting funding for your startup, the U.S. is the best place for finding people to invest in your company. After all, innovation and entrepreneurship are two of America’s cultural touchstones.
This makes sourcing American investors a crucial step if you’re attempting to fund your startup. Thanks to the global economy, you don’t even have to live or work in America in order to reap the benefits of the fabled Land of Opportunity.
Here are three of the best ways to find US investors to fund your startup.
Funding for Startups Means Finding the Right Venue
While you may feel that you can network effectively across the pond and try to source investors for your startup, your best bet is to instead relocate – at least temporarily – to the United States. This is because a majority of American investors prefer to do business close to home.
Furthermore, because the US covers such a large geographical area, you’re going to have to be a little picky about where you settle for a few weeks or months.
Do some research into where you can locate investors for your niche market.
A 2015 study of the most prolific tech markets in the United States, for example, found that the city of San Jose, California, ranked first in the country when it came to per capita venture funding, with $3,585.68 per individual.
Not only that, but the region was the home of more than 27 technology-related patents for every 1,000 local residents, making San Jose a hotbed of innovation and investment activity.
Set Up Inexpensive but Professional Offices
Once you’ve chosen your venue, you’ll have to create a professional presence to show potential investors you mean business.
You’re probably operating on a shoestring budget at this point, so you’ll need to find inexpensive options that won’t break the bank. One of your best options for accomplishing this is to find a coworking space that offers flexible options.
Coworking spaces have become popular alternatives for companies, especially startups; in 2017 alone, the number of company staff using a coworking space has grown to 1.2 millionworldwide.
It isn’t hard to see why. Coworking spaces enable for flexible hours, group collaboration, and ample networking opportunities, allowing you to establish a network of colleagues and to exchange ideas with like-minded entrepreneurs. In fact, 71% of people feel that they’re more creative in a coworking space, while 62% report an improved standard of work.
On top of this boost in creativity and productivity, coworking spaces can provide a professional business address for mail, phone and fax forwarding services, and flexible or even hourly rates for access to offices and conference rooms. Getting funding for startups is much easier if you can show an investor that you have a connections with other entrepreneurs in your field, and that you’re a working professional serious about your business idea.
Network Your Little Heart Out
Once you’ve identified where you need to set up shop and established a professional-looking beachhead at an appropriate office space, it’s time to really get to work.
You’ve got to network like mad to make connections in your chosen industry, and this means you’ve got to dig deep and pull out your most sociable self to get your foot in the door.
You’ll never get anywhere without forging these connections to other people and companies. As the old adage goes, sometimes it’s not what you know – it’s who you know.
Networking can take a number of different forms. Ideally, you should begin networking before you even set foot on US soil.
Identify people and companies that specialize in investing funds into startups, and then begin the process of reaching out to them through email, phone, or social media. Cold-calling and cold emailing investors doesn’t always elicit responses; it’s more effective to first reach out to mentors and colleagues who have existing connections with investors.
Once you research these connections, strategize your communication with relevant colleagues. Contact them to gently ask for introductions, and record the progress of your conversations using either an excel spreadsheet or specialized tracking platform.
Coworking is also a great way to make connections in-person.The people with whom you share your office space are a great starting point for branching out into local networks. They might be more familiar with the industry and local landscape than you are, and this could pave the way for making connections with investors.
In addition, a combination of online and in-person networking opens the door for you to introduce yourself to valuable connections when attending industry events.
The Key to Funding Your Startup
It doesn’t matter what industry or business sector you’re in, where you’re from, or how much funding for startups you’re looking for; one of the best places to get your startup off the ground is the United States.
This isn’t to say that the process is going to be easy, of course – it takes tireless work and dedication to get a brand-new company off the ground.
But unless you can provide the funds on your own, you’re going to have to enlist the help of investors with some deep pockets.
Don’t tear out your hair thinking of how to find investors. As long as you follow these tips, dedicate yourself to providing the best product or service you can, and cling tenaciously to your goals, odds are you’ll be successful in finding people and companies who want to invest in you and your vision.