Over the last 5 years I have been fortunate enough to build two different tech startups that collectively have raised over $7.5m in funding from both angel investors, syndicates, and Venture Funds.

Whenever I talk to early stage founders who where in the exact same shoes I was when starting my first startup they always ask the same exact question I used to ask; “How do I get an investor to invest in my idea?”

The reality is acquire an investor is no different then acquiring a customer. It takes understanding, research, timing, and a clear “why”.

The problem is many early stage founders see investors as…

• an answer to all of their problems

• someone who they just need to pitch and they will instantly give them a blank check

But the reality is

• Mo’ Money = Same Problems: Investment money will not solve the issues your startup is facing but rather it will amplify them. Unless investment money is the ONLY way to acquire the solution you need that your startup is facing then you will just end up in the same spot you were before the investment just 12- 18 months later, millions in debt, and going back to the same question: “How do we raise more money?”

• Investors are not magical genies who once you find them and pitch them they just investor. They are “businesses” and you need to treat your startup as a “solution” that their business is missing. They are in the business of making strategic investments in companies for a future return. So finding the right investor that sees the problem, understands the business, and knows that by adding your business to their portfolio they can make their own business more successful; then you will unlock your first investment.

So lets break this down.

Understanding the different types of investors

For those that are truly new to this lets start by understanding the different types of investors & the vehicles in which they invest with.

Investor Types

• Friends & Family – This is usually the first money in. It’s less about business and more about belief in you. These checks are often based on trust, not traction. That said, it’s still real money, so treat it with the same respect you would a VC check.

• Angel Investors – Think wealthy individuals (often former founders or operators) who write $10K–$250K checks. Some are super hands-on, others just want updates. These investors invest early, bet on you, and don’t usually need a full deck of metrics—just conviction.

• Syndicates – This is when a lead angel pools money from a group of smaller investors (often via platforms like AngelList). You might raise $200K–$500K from 10–50 people, but only have to deal with one point of contact. Syndicates are a great way to raise a decent chunk without giving up too much control.

• Venture Capital (VC) Firms – These are institutional investors managing other people’s money. They write bigger checks ($500K–$10M+), expect growth, and usually want a board seat. They care about TAM, go-to-market strategy, and your exit plan. You’re not just pitching a product—you’re pitching a fund return.

Alternative Investor types:

• Venture Debt – This is debt financing specifically for startups, usually paired with VC funding. You keep your equity, but you’ve got to start repaying it quickly. Good if you need runway without dilution—but dangerous if your cash flow sucks.

• Family Offices – These are private investment firms managing the wealth of ultra-high-net-worth families. They move slower than VCs, but if your startup aligns with their values or legacy goals, they can be very patient capital.

• Strategic Investors – These are corporations investing in startups that align with their industry. Think Google Ventures or Salesforce Ventures. The upside? Distribution, partnerships, and credibility. The downside? They may have their own agenda.

• Accelerators & Incubators – Think Y Combinator, Techstars, etc. Small checks, big networks. Great if you're early and want mentorship, exposure, and community.

Investment Vehicles:

• SAFEs (Simple Agreement for Future Equity) – No valuation now, just a promise of equity later, usually with a discount or valuation cap. Fast, founder-friendly, and common for pre-seed/seed rounds.

• Convertible Notes – Similar to SAFEs but structured as debt. They accrue interest and convert to equity later. A bit more old-school, but still used.

• Priced Equity Rounds – This is when your company is formally valued and you sell shares at a fixed price. More complex, more legal fees, more dilution—but it signals maturity and brings in serious money.

Build & They Will Come

As I mentioned in the beginning- to attract investors you need to treat them the same way you would a customer so start putting on your sales hat and thinking about how you can attract investor attention the same way you would attract customers.

Part 1: Build Something

The problem is many founders think “I can’t build my company without investment”- thats problem number 1 because building “something” (even with no outside investment) is the first of many tests as an entrepreneur because early stage investors are not just investing in an idea…. they are investing in YOU. So the question is how do YOU think about problems? Do you resort to utilizing money to fix the issue or do you roll your sleeves up and figure out a way to do it without money? Because the reality is the entire success of a startup comes down to your ability as a founder to balance the constant battle between limited resources and maximum growth.

So by just starting and figuring out how to build SOMETHING it shows investors that you are committed, scrappy, and able to maximize your growth with limited resources.

Now part 2 is where it really becomes clear why you need to “think about investors like customers”- because in part 1 by building something your showing investors (just like your customers) that you have an idea that your working on that they should be interested in.

Part 2: FOMO

Just like customers don’t want to miss out (they pay attention to long lines, find “hidden gems” on social media, etc) investors don’t want to miss out either. The way investors make money is very simple- Find a company before its known, support it, grow it, and when it becomes a major success sell it. So they (just like customers) have a “fear of missing out”.

This is when you put on your sales and marketing hat & use this to your advantage. Once you “build something” that indicates traction, intrigue, etc make sure to maximize the publicity around it while specifically target that AT investors.

Now your not always going to get an article picked up that reaches the right reader so sometimes you have to be a little savvy. Over the years I have

• Pre-friended investors on linkedin and then posted updates hoping they would see the updates organically

• Run linkedin ads of our press releases specifically targeting investors

• Tagged people in my network on linkedin posts that are connected with investors so they engage with the post hoping that linkedin will show the post on the Investors feed that I’m trying to contact.

Build First:

Customers won’t come unless you have a something - neither will investors. So before you even start thinking about taking on an investment, first start thinking about how you can build something that will attract the investors to come to you. The best scenario to be in as a founder is being able to focus 100% on building your company and have the growth your experiencing be a catalyst for organic investor outreach.

Other Investor Resources:

{currently in process}

For more investor resources check out these other articles

1. How to choose the right investor for your company, stage, etc?

2. Understanding financing rounds, KPI’s, and more

3. Tools to plan and nail your financing round

4. Building the perfect pitch deck

5. Good & Bad investment clauses/terms