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Investors and shareholders are the lifeboats of a business whenever the business is likely to sink they come into use to save it. You can’t expect to grow a startup business by yourself without the investors and shareholders. Your company will likely go bankrupt without Investors. You will have two choices either to close your startup or take some loan from someone or banks in return for the interest that interest will increase day by day and a time will come you’ll find yourself floating in debts.

One wrong step can be enough for your company to shut down. Here comes the necessity of shareholders and investors. Of course, you won’t get investors initially, and why? Because investors don’t know their investment’s fate. If you were an investor you’d also be thinking of your money, not someone’s startup because you don’t want to take any risk. In order to attract investors you must have to earn their trust and in return offer them something. So how do you earn the trust of the investors and attract them to your startup?

Advertising your startup to attract investors

Before the modern age, it was difficult to attract investors and shareholders. Except for advertising through billboards and some televisions, there were no good sources of advertisement. But today it is easier than before for startups to find investors. Today even memes are being used to advertise a business and this pretty much works. Not to forget social media, is one of the powerful sources of advertisement for entrepreneurs.

You can use social media to attract shareholders and investors by posting engaging content about your company and its vision. Sponsoring Youtube videos can help your startup get a lot of investors. Apart from Youtube, Google is one of the best sources for advertisement. You can set up a Google Business account and Google will take care of your online presence on google meaning whenever someone will search about your company, your company’s information such as location and vision, etc will appear in the search index which will help investors to read more about your startup. Learn more about Google Business account.

Venture Capitalists

Venture Capitalists can decide the fate of your startup. If you don’t get an individual/angel investor then you should approach venture capitalists. So who are Venture Capitalists? They are a type of investor that analyzes your startup and then decides whether to invest in your startup. They are well expert investors, so if they analyzed your startup and see any potential growth in the future of your startup then they will invest in your startup.

They won’t only invest in your startup but will provide expertise and mentorship for your startup. They also conduct a litmus test which will tell you if your business in the future would run or not. The funds/investments of venture capitalists are called venture capital. You can learn more about them here.

When Facebook was rapidly growing in 2004 and was getting fame then the first outside investment was made by venture capitalist Peter Thiel. After Analyzing Facebook Peter Thiel made an investment of $500,001 in Facebook in return for the share of 10.2% of the company.

After Peter, the second investment was also made by a venture capital firm named Accel which boosted up facebook’s worth to $98 million.

Personal Views

Today we see these big famous companies and their business is skyrocketing, they didn’t get growth overnight but it took them decades to get to this stage. Every big company has sacrificed everything they could and waited patiently in order to get to this stage. So believe in yourself and keep hustling for your startup. Maybe in 2040 or 2050, your company replaces these big companies.

I assume that everyone would know that Facebook was founded by Mark Zuckerberg and his roommates, initially it was a photo comparison website which was a type of game where you’d be shown two pictures of different girls and you had to answer “hot or not” and its name at that time was FaceMash. The point being is everyone was once a beginner. Even Mark Zuckerberg once said he developed chat systems before Facebook.