To find investors for your startup, start by identifying which types of investors fund companies at your growth stage. Having a network of potential investors, even a small one, can help. Whether you seek funds from friends and family, venture capital (VC) firms, angel investors, or other funding sources, understanding your options can help you find the right type of investor for your startup.

Below, we’ll discuss where startups find investors, how to find the right investor for your business’s growth stage, and how to build credibility before you contact them.

Key takeaways

• Startups can find investors through friends and family, angel investors, VC firms, accelerators, incubators, and syndicates.

• You can compare investor options by checking the size of their typical investments, key geographic and industry-specific focus areas, and whether they fund companies at your growth stage.

• With a target investors list, a first-time founder could potentially secure investor meetings in four to six weeks.

Where do startups find investors?

Common investors for startups include:

• Friends and family: Personal connections are a practical starting point for an early-stage startup seeking funding. Investment from friends and family can be especially helpful if you don’t need a large amount to establish your business or fund your next phase.

• Angel investors: These individuals often invest in the early stages of a startup in exchange for ownership equity or a convertible note. Investments from individual investors can range from $5,000–$100,000. Angel groups offer larger amounts, but less than VC firms. Angel investors can also be a valuable resource to founders, providing mentorship and introducing you to contacts who can help your company grow.

• VC firms: Seed and early-stage VCs pool money from individuals, corporations, and other sources and invest in startups with proven business models that are positioned for rapid growth. VC firms typically invest $500,000–$5 million during the initial seed round and $5 million–$30 million or more during Series A rounds.

• Accelerators and incubators: These programs help new startups learn how to run and grow a business through mentoring, structured education, and investor pitches. Accelerators can also provide seed funding in exchange for a small equity stake. For example, Y Combinator (YC) invests $500,000 in every company it accepts: $125,000 converts into a fixed 7% stake of the company, while the remaining $375,000 is invested through an uncapped most-favored-nation simple agreement for future equity (MFN SAFE). Incubators usually offer support for a longer period, including workspace, advice, and introductions to investors.

• Syndicates: A syndicate is a group of angel investors who combine their resources to invest larger amounts than any of them could give individually. They can help pre-seed and early-stage startups that have outgrown self-funding and help from friends and family, but need more time to attract VC funding. You can pitch a regional angel group or syndicate on a platform like AngelList, potentially reaching many investors at once.

• Personal and professional networks: Even if your network doesn’t include investors, a contact could help introduce you. Warm introductions can serve as a soft recommendation that tends to convert at a much higher rate than cold email outreach. Industry events and local business groups are a great way for founders to meet potential investors and other entrepreneurs.

How do you match investor type to your stage and industry?

Look for investors who fund businesses at your stage of growth. For example, angels tend to invest in companies that are just starting out, while VCs generally invest later—when your business model is proven and you’re ready for significant growth.

Narrow your search further by investment size, industry, and geography. It’s worth remembering that investor capital is largely centered in San Francisco, New York, and other startup hubs. Remote pitching is still possible, but investors often favor local startups.

What are the research tactics for building a target list?

Having a target list of potential investors can help you plan your outreach strategy.

Here are some effective ways to research investors and build your target list:

• Research investor portfolios: Look for startups in your industry that received funding at your company’s current stage, then find out who invested in them. Most VC firms and angel groups name the companies they’ve funded on their websites.

• Use investor databases and newsletters: Investor newsletters, local investor networks, and databases like AngelList and Crunchbase can help you discover who invested in a particular startup.

• Join industry communities: Trade associations and online founder groups like Indie Hackers and StartupNation can connect you with other founders and host discussions about raising funding.

• Attend pitch events, demo days, and founder meetups: Build credibility by connecting with potential investors several months before you formally pitch them. Industry events and meetups help you meet potential investors and mentors. Accelerator demo days allow you to pitch several potential investors at once.

How do you build credibility before contacting investors?

Get your company in order before you contact investors and make your pitch. This includes meeting all business requirements and providing proof that your business model works, which can help win investors over.

Here are some tips to help boost investor confidence in your startup:

• Legally incorporate: Before you can sell shares to investors, you’ll need to legally incorporate your startup. A Delaware C corporation is a common choice for startups that seek outside funding because it allows founders to sell ownership shares and clearly defines investors’ rights.

• Keep your cap table up-to-date: A cap table is a clear record that shows who owns shares and who owns options, notes, or a simple agreement for future equity (SAFE) that could become shares later. Having an accurate cap table helps avoid any ownership confusion when investors review it.

• Prepare a clear, concise pitch: Explain the problem your business addresses and what sets your solution apart from the competition. Include the size of your potential market, evidence of progress, the amount you need to raise, and how you’ll spend it.

• Show early traction metrics: You may not have metrics yet to share, but if you do, they don’t need to be big. Investors simply want evidence that your business is making progress and producing results. Choose a few accurate, compelling figures—such as revenue or engagement—that show “traction,” or quantitative evidence of product-market fit. A typical pitch may include more than 10 data points, so make sure the ones you highlight stand out.

• Present a coherent story: Ensure your presentation to investors clearly communicates the problem your business addresses, the market, and why your startup is best positioned to solve the problem. Use your cap table, traction metrics, and other data points to support your pitch story, instead of presenting an unorganized list of details and figures.

Warm introductions vs. cold outreach: Which works better?

Warm introductions can help increase response rates compared to cold outreach tactics. Warm introductions can convert into meetings at 10–20 times the rate of cold emails because they carry pre-built trust.

While cold outreach is less effective, it might still be a viable option when you have no other path to meet an investor. When you email potential investors, consider keeping the message short and sending it only to investors with track records of funding companies in your industry and at your stage. You’ll want to briefly but clearly convey why your startup matches their current investments.

Whether you connect through warm introductions or cold outreach depends largely on what phase your company is in and your network. If you’re starting your first company, your network might be small so you’ll need to rely more on cold outreach or recommendations through an accelerator or other founders. However, if your startup is established, you might already have a network of existing investors and business advisers you can turn to for introductions.

What is a realistic investor outreach timeline for a first-time founder?

For a first-time founder, moving from finalizing a target list to requesting warm introductions and scheduling first meetings with investors often takes four to six weeks. The timeline will vary, depending on the size and strength of your network and market conditions.

Here’s a sample timeline:

• Weeks one and two: Once the target list is finalized, a founder prioritizes contacts who are the best fit for their industry and stage. For each investor, they identify the partner they need to contact and any existing contacts that might be able to make an introduction.

• Week three: The founder tests their pitch on a few investors they already know to get an idea of the kinds of questions they’ll face. These meetings could uncover objections they hadn’t thought of or flaws in the company’s story that need work. It’s better to spot these issues before pitching investors on the target list. Once the pitch is ready, the founder works with their contacts to set up introductions, and emails the remaining investors on the list directly if no one can introduce them.

• Weeks four to six: The founder schedules their first meetings with investors, preferably close together so they can use what they learn from each conversation to improve their next pitch. Rejections are common so it’s important to stay hopeful despite them. The founder can use a spreadsheet or simple customer relationship management (CRM) tool to track meetings, follow-ups, and other tasks.

How Stripe Atlas can help

Stripe Atlas handles everything you need to legally launch your company—incorporation, employer identification number (EIN), equity setup, and tax filings—so you can fundraise, open a bank account, and start accepting payments in as little as two business days, from anywhere in the world.

Join 100,000+ startups incorporated using Atlas, including startups backed by top investors like Y Combinator (YC), a16z, and General Catalyst.

Get started in minutes with Atlas

The application takes under 10 minutes. You’ll choose your company structure, confirm your name is available, add up to four cofounders, set your equity split, and e-sign. Then, Atlas takes it from there, including notifying cofounders to sign their documents electronically.

Banking and payments before your EIN arrives

Atlas files your EIN application automatically after incorporation. You don’t have to wait. Atlas enables pre-EIN payments and banking so you can start accepting payments and making transactions right away. US founders with a Social Security number are typically eligible for expedited Internal Revenue Service (IRS) processing.

Automatic 83(b) tax election filing

Atlas files your 83(b) election for you—US and non-US founders alike—with US Postal Service (USPS) certified mail and tracking to reduce personal income taxes. You’ll get a signed 83(b) election and proof of filing directly in the Stripe Dashboard, with certified mail confirmation.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company—drafted by Cooley, one of the world’s leading venture capital law firms—and stores them directly in the Stripe Dashboard. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

$2,500 in Stripe credits, plus $50K+ in partner discounts

Atlas startups get $2,500 in Stripe product credits for their first year, plus $50,000+ in discounts on essential tools—Mercury, AWS, Carta, Xero, Perplexity, and more. Delaware registered agent service is also included free for your first year.

Learn more about how Atlas can help you set up your new business quickly and easily, or get started today.

FAQs about finding investors for your startup