Online taxi-hailing market mostly comprises of regional startups which don’t have any major financial backing. And new firms which enter this market are also bootstrapping their business. For these new and existing firms, getting an investor can be a game-changer.
While there are many ways to get investment for a startup, individual angel investors and investment groups are something accessed only by internet startups.
I have explained some ways to get investors on-board in your taxi startup. These points will be appropriate even for other on-demand startups. Not let me get into the point.
Investors through referrals
When searching for an investor you have to turn as a salesperson. You must do what a typical salesperson does. Most of the salesperson get many sales through referrals. So try your friends and close acquaintances for referrals to potential investors. Even try top b-schools nearby to you as they may have connections with leading entrepreneurs and investors and getting help from these b-schools might be effective.
Entrepreneurial clubs and communities can be seen in many places nowadays and this is also the best way to get referred.
Even if any potential investors has turned down your request you can ask them for some other people who are interested in taxi startups. To make the process quicker, get a list of people who can help you and find if any of them have mutual acquaintances.
Angel list who are interested in internet startups
Angel investors are big individuals who are keen to invest in interesting and exciting startups. Most of the silicon valley startups were initially funded by angel investors. A sizable share of the capital investment can be afforded by these investors.
Apart from investment, these people also provide valuable inputs to run the startup. There are dedicated websites for angels where you can find their past investment, focus, investment ceiling, and area of interest.
You can easily go through it and make a list of angels who closely works in your area of interest.
Be prepared to tell why your firm needs an investor
The next option for seeking investment after an angel investor is the venture capitalists(VC). Partnering with VC is a hard job but once it is set, you can confidently take bold decisions like bringing abrupt tech change to startups.
The expectations from VCs are very high and the first thing you need to focus is to tell why you need them. Even if you find your taxi app startups service or idea to be weak, you can still convince the investors by your vision. But this should not stop you from improving your service.
Placing your startup different from others in the market by adopting the latest advancements and giving user friendly service will create recognition to you. This recognition is enough to defend your firm to a VC. Having a recognition also helps to show your taxi startup’s sustainability because when an investor sees more risk he is less likely to invest.
Seek accelerator programs
Some large investment companies and universities conduct accelerator programs which are weeks to months long camps. They are conducted for the sole purpose of helping to launch potential startups after classes, mentorship from top entrepreneurs, and step by step assistance.
These programs are also the place where you can prove your startup’s worth and grab investments and seed funds in turn for some equities. These accelerator programs are highly competitive and top companies that provide these programs are Ycombinator, 500 Startups, and Plug & Play.
Don’t be desperate
Showing yourself desperate for funds will not convince the investor. If you have good vision and positive outlook on your taxi startups, it is enough to get the investors on the line.
One way of not showing yourself desperate is by asking for advice first instead of money. The advice can be on product development, new release, marketing, and customer acquisition.
Like I said before, startups and entrepreneurs with new ideas that are not so good have succeeded in fundraising. So emphasis is more on your skill to get investor. If your service is perfect with a sustainable working model, your chance of convincing an investor will be bright.
One of the assured ways to make your startup perfect is by using a top-notch booking app solution. Here too you can save money by opting for readymade taxi app script.
SpotnRides is an app development firm having pre built app solution. As a startup founder, you can give us the entire app development work with all necessary changes so you can focus on your core business and fundraising.
I know you’re not fully aware of our solution, so tap a message to [email protected]. Ask any queries and we are ready to answer you anytime.