Startups often run into the same problem: where to find
investors to raise capital. This especially is true for hardware startups that
have a harder time getting investors interested in their products.
Some founders think that the only way to get investors on
board is if an accelerator or an incubator successfully selected them. But I’m
here to show you that you have options to find investors.
As someone being around startups and getting this question
almost on a daily basis, I decided to enumerate in here the best places where
you could get the opportunity to find your next investment for your business
and jump to the next level of your startup.
10. OurCrowd
OurCrowd is an equity crowdfunding platform investing
in global startups. They have a community of over 30,000 investors worldwide.
For startups, they share a 5-step process. Startups will be
screened in step one before meeting with OurCrowd in step two.
Step three involves due diligence meetings with the
investment teams. Afterward, your startup will be presented to the investment
committee where they will make their final decision in step four.
Once accepted, your startup will move on to step five to the
fundraising stage. At this stage, you will have access to investors and you
will be able to participate in events.
09. FundersClub
FundersClub claims to give startups an unfair advantage
by using innovative software and their powerful, global network of 22,000
members.
Startups get access to a founder community where they can
communicate with other entrepreneurs and get help through online and in-person
events.
You will also have access to mentorship through
FundersClub’s own team members. These members have been through every step of
the startup cycle from launch to exit.
FundersClub receives a percentage of the profits of the
investment. They are only charged if there is a positive outcome for the
campaign.
Eligibility requirements are not limiting, however, they
only accept 2% of applicants into their platform. They are looking for startups
with early-stage companies with seed or Series A round being preferred. They
want to see if your startup has the potential for enormous growth.
08. SeedInvest
SeedInvest’s startup investment platform gives startups
access to 250,000 investors. So far, they have helped raise over $100 million
for 150+ startups.
Accepted startups receive $0 retainer from SeedInvest. They
will pay all upfront costs which startups will pay with a $10,000 flat fee at
closing. Startups are only charged with successful campaigns. SeedInvest will
eat the upfront costs if campaigns are unsuccessful.
Other fees include placement fees and equity fees. Again,
these are only charged for successful campaigns.
SeedInvest has a rigorous application process and only
accept 1% of startups that apply. Startups need to meet the minimum
requirements before moving forward. Startups need to have a minimum viable
product (MVP), proof of concept and at least two full-time team members.
They also have a strong preference for technology and
consumer-based businesses. So, if your hardware startup meets that criteria,
SeedInvest is a great opportunity.
07. Equity Crowdfunding by Indiegogo
Built by the popular crowdfunding platform Indigogo, Equity
Crowdfunding by Indiegogo is made to help startups raise funding for their
businesses, not just individual products.
Startups get the option of raising capital through flexible
or fixed funding goals. Flexible funding lets startups keep all money that was
raised, and fixed funding requires the goal to be met before startups get the
money.
You’ll also receive tools to help with marketing, promotion,
fulfillment support and campaign management through different devices.
Equity Crowdfunding by Indiegogo charges a 5% platform fee
when crowdfunding, and the platform is free for startups pre-launch.
Indiegogo offers additional services for entrepreneurs, so
they can be your one-stop shop. Explore their directory for creative services,
marketing services, prototyping, retail distribution, and website development.
Being built by a reputable company, this platform will pair
great with your hardware startup.
UPDATE: This platform does not exist anymore since March
2019.
06. StartEngine
StartEngine is an equity crowdfunding platform ready to
help startups raise capital.
With a creative team to help you design your campaign, you
can attract investors from their community of 200,00 people. You’ll also have
access to an account manager and a drag-n-drop feature to create the perfect
campaign page.
Startups set their own terms with their investors who can
invest easily through credit cards, ACH, bank wires and cryptocurrency.
For hardware startups to be accepted to StartEngine,
startups need to be based in the US. StartEngine will also review startups
based on revenue, team, customer engagement, previous funding, marketing
budget, and market growth to see if your startup will have a fair chance in
crowdfunding.
StartEngine is a good choice for startups looking to
crowdfund their raises. There’s no listing fees and only a 6% charge from
StartEngine after campaign success.
05. Wefunder
Wefunder is another crowdfunding option for raising
funds. With a detailed stats page for proof, Wefunder has been in the
game for a long time and know how to get results.
So far, they have helped hardware startups raise over
$9million in total. You can raise between $20,000 to $50 million dollars with
Wefunder.
Startups pay $0 upfront to start their campaign. Only
startups with successful campaigns are charged by Wefunder. Their fee is 7.5%
of the total fundraiser, and they’ll match the price if you can find a better
deal anywhere else.
However, only a for-profit, US-based corporation or LLC is
accepted.
With no startup fees, you have nothing to lose by trying
Wefunder to raise your funds.
04. GlassDollar
GlassDollar focuses on matching your startup with
investors. They have their investors fill out criteria and match startups to
them that meet that criteria.
This makes sourcing and finding investors easy. You will
only be matched with relevant investors and saving time and energy in the
process.
You get to approve which investors you would like to give
your pitch and then move on from there.
GlassDollar is free to use and there’s an easy assessment to
see if your startup qualifies.
With this cool machine learning technology, finding investors
have never been easier — or cooler.
03. Republic
Republic is another great platform to crowdfund your
startup funding. The website is powered by AngelList, which is featured next,
so it’s highly reputable.
Using Republic gives you access to the general public so you
don’t have to rely on angel investors or venture capitalists. Anyone can invest
in your startup for as little as $10USD. This makes it accessible to more
people wanting to invest.
They will hook you up with great tools to create a branded
campaign page that will accept all types of investments including ACH and
wires.
There’s a baseline cost of $3,000 to raise money with
Republic and then they will take a commission on successful campaigns.
Only US-based companies that are accepted are able to raise
money on this platform.
02. AngelList
One of the most popular platforms out there is AngelList.
AngelList offers startups opportunities to find seed fundings and angel
investors.
It also has a job board for people looking to find a job in
a startup environment. You can post job ads as well if you’re looking for new
members.
AngelList lets you build your own network on the site,
through email invite or by connecting your social media accounts, to increase
your chances of getting funding. Or you can use its search tool to find
investors that will be a good match for your startup.
It is free to make an account with AngelList, so you have
nothing to lose by using this platform to search for investors.
01. Investor Hunt
Sitting at number one for the best online platform to find
an investor for your startup in 2019, we have Investor Hunt.
Investor Hunt gives you access to over 40,000 angel
investors and venture capitalists. You can choose between three different
plans.
A basic plan, $69/month, that gives you unlimited searches,
investor name data, social media links and past investment data per investor.
A pro plan, $149/month, that builds upon the basic plan with
exporting options and direct email addresses. And a premium plan, $299/month,
that also includes phone numbers and office addresses of investors.
Their database is filled with investors investing in digital
products to physical products, so your hardware startup can find what it’s
looking for.
Since it’s built by Product Hunt, you can guarantee you’ll
get your money’s worth with Investor Hunt.
Bonus: Foundersuite
Founded by Nathan Beckord in 2016, Foundersuite has
helped numerous startups raise over $2.2 billion in seed and VC. It gives the
opportunity to get access to an impressive database of about 41,000 funds
including VC, strategics, family offices, and more, but also more than 100,000
angel investors.
This platform offers affordable monthly subscriptions, in
different plans, with a free one to at least check what the platform has to
offer and how it works.
It also does have an interesting concept: an investor CRM,
where you can check and follow up with the progress of your investment
research, using a pipeline.
Definitely another platform to try out if you want to raise
money efficiently, especially with this CRM pipeline that will definitely help
you save time and focus on other matters as we all know how raising funds can
be really time-consuming. There is a more thorough article on medium on
Foundersuite.
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