How do I find investors?

• Before you seek out investors, make sure your startup is investor-ready. This means demonstrating traction and being able to show how your startup might have an “unfair advantage.” If you can demonstrate that you have good momentum and are ready for startup capital, reach out to investors and angel groups who have an interest in your industry (e.g., ecommerce) or in your network (i.e., NYU). Investors who think a lot about a particular sector tend to write about it on Twitter, LinkedIn, etc. Investors tend to appreciate when founders have done their homework on the types of startups they invest in.

How do I know when I’m ready to fundraise?

• A startup can be considered ready to fundraise when it has demonstrated a clear problem-solution fit, validated market demand, and established early traction through metrics such as revenue, user growth, or key partnerships (with letters of intent or signed contracts). The team should have a strong track record, critical roles filled (or a plan to do this), and a strategic vision to scale. An investor deck that shows your traction (with milestone wins), impressive KPIs for your industry, and a plan for where you’re going and how you’re getting there are critical. Your financial projections should be based on early traction and data and market benchmarks. Be ready to justify why you need the money to scale and include a use-of-funds tied to key milestones.
• Note that fundraising is never the end goal! The goal is to grow, so funding is simply one of the vehicles to get to growth. Also note that not every business needs venture capital funding. Bootstrapping and taking out business loans or applying for grants are a great way to finance your business without giving up equity and control.