How to find investor in startup IT company?

I have a business plan for making great software product. The product market are banks (finance) who needs this type of product. I have worked in three banks in my country. I have already made one software and sold it, few years ago, to 8 financial institutions (banks). I want to develop different product for banks. First version for sales can be developed in 4-6 months. Software would be sold as a service (monthly ongoing payments). I am an expert in finance (banking). I started learning coding in C# to be able to participate even in coding. Costs of development of first version of product are around 10,000 USD. I can offer percentage of company equity. How can I find an investor who would be interested in investing in startup, who can sell this product worldwide?


I've found great success in using LinkedIn for find accredited investors individually.

Additionally, look at industry-related news websites (GeekWIre or TechCrunch, for example), specifically those who cover funding. Their announcements include the groups backing the project.

Answered 4 years ago

First of all, be careful about submitting business plans to an angel investor. They go for the 'deck' instead, especially during the early stages.

I would suggest AngelList, which is the best platform to find investors

Also, I would suggest you take the startup class Y Combinator prepared with Stanford University. It will give you a lot of guidance on how to get funded fast:

Answered 4 years ago

Like other start-ups and other questions that pop up on Clarity, "it depends". I'll share what I can based on my experiences in financial services (as an executive with Goldman Sachs) and from starting up an IT-powered company.

With your experience and with the low investment of USD 10,000, you might want to approach your prior banking customers to see if one of them wants to fund your development - not as an investor but as your first client(s). If you can pull it off, the funding would count as revenue to you and an expense to the client, not equity. This is sometimes called "non-dilutive capital" and you would not have to give up any % of your company. Starting with your prior clients has the advantage of talking with people you already know you rather than searching the planet who don't know you. The process of asking your prior clients will give you valuable feedback and ideas about your product and the pricing/distribution model which will "de-risk" your efforts.

It's an exciting topic and challenge so just request a call if you'd like to talk through it.

All the best.

Answered 4 years ago

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