6 Practical Tips for Using LinkedIn to Find Investors What you need to know when using the professional networking site to help secure funding for your business.
By Melanie Goodman Edited by Jason Fell
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There is rarely a day that passes without a LinkedIn connection reaching out to me to ask how they can find interested investors for their niche on LinkedIn. As it turns out, there is an abundance of opportunity if you know how to find it.
Here are six practical strategies to optimise your LinkedIn presence to help find and engage with potential investors here in Europe and elsewhere around the world.
1. Craft a magnetic profile that attracts investors.
Your LinkedIn profile serves as the first impression for potential investors. It's essential to make it both compelling and optimised for search engines. Start with your headline—you have 220 characters in which to convey your role, industry impact, and investment goals. Instead of using a generic title like "Founder at XYZ Startup," opt for something more descriptive, such as "Founder & CEO | Revolutionizing [Industry] | Seeking Strategic Investment." This approach not only defines what you do but also subtly hints at your investment aspirations, making your profile more likely to catch the attention of investors.
Next, focus on the "About" section of your profile. This 2,600-character space should tell your story, outlining your journey, challenges, and future vision. Think of it as a narrative that humanises your profile and allows potential investors to connect with you on a personal level. Start with an attention-grabbing line that piques interest, and then walk the reader through your entrepreneurial journey, highlighting significant challenges and how you overcame them. Conclude with a call to action, inviting investors who share your vision to connect.
Highlighting specific achievements in your profile is another crucial element. Using concrete metrics like "% growth, $ raised, # of customers" in the "Experience" section can demonstrate your impact and build credibility. Finally, ensure your profile picture is professional, and your banner reflects your startup's brand, reinforcing your identity visually.
2. Engage actively and purposefully.
Engagement on LinkedIn is crucial for building visibility and relationships with potential investors. However, before you leap into engagement, it's important to find the right people to connect with. LinkedIn's advanced search functionality allows you to filter and identify potential investors by using keywords such as "angel investor," "venture capitalist," or "private equity." You can then narrow your search by location, industry, connection degree, and company size, which helps you zero in on the most relevant profiles. For more refined results, use Boolean operators like AND, OR and NOT (always capitalised).
Once you have identified potential investors, engaging with them thoughtfully is key: Start by commenting on posts from key influencers in your industry. This is a subtle yet effective way to showcase your expertise and build connections. Additionally, sharing valuable content regularly can position you as a thought leader in your industry. Whether it's industry trends, case studies, or how-to guides, ensure the content you share resonates with your target audience.
Another effective engagement strategy is participating in LinkedIn groups related to entrepreneurship and investing. Groups like "Entrepreneurs Meet Investors" or "Global Accredited Investor Club" offer direct access to relevant discussions. Regularly contribute to these groups by offering help, sharing insights, and connecting with active members, expanding your network and increasing your visibility.
3. Leverage LinkedIn's publishing platform.
Publishing content on LinkedIn can establish you as a thought leader, which is highly attractive to investors. Start by sharing industry insights—investors are always interested in the latest trends and developments. Writing articles on trending topics within your industry, offering analysis, or providing unique perspectives can help you gain attention and establish credibility.
Documenting your entrepreneurial journey is another powerful way to engage your audience. Transparency fosters trust and sharing both your successes and challenges as an entrepreneur can resonate with investors. Authentic storytelling can make your profile stand out and demonstrate your resilience and passion.
Moreover, offering actionable advice through your posts can enhance your influence on LinkedIn. Share practical tips, tools, or strategies that have worked for you in your entrepreneurial journey. Ensure that your advice is easy to apply and adds value to your audience, further positioning you as a leader in your field.
4. Master the Art of LinkedIn InMail.
InMail is a direct way to reach out to potential investors, so it's important to make each message count. Before crafting your message, thoroughly research the investor's background. Understand their recent activities, past investments, and any mutual connections or shared interests. This knowledge will help you tailor your message to resonate with them.
Personalisation is crucial when using InMail. A generic message will likely be ignored, so begin with a personalised greeting, referencing something specific about the investor's profile. Clearly state your purpose and value proposition, focusing on the problem your startup solves and why it represents an excellent investment opportunity. Keep your message concise and compelling, as investors appreciate brevity.
Following up smartly is another critical aspect of using InMail effectively. If you don't receive a response to your initial message, wait about a week before following up. In your follow-up, reference your previous message and include any new updates or insights. Be polite and understanding of their busy schedule while reiterating your interest in connecting.
5. Use LinkedIn events and live sessions for direct engagement.
LinkedIn's event features offer unique opportunities for direct engagement with investors. Hosting virtual pitch events, for instance, can be highly effective. By organising a session where you present your business to a select group of investors through LinkedIn Live or LinkedIn Events, you can make a strong, personal impression. Promote these events within your network and ensure you invite investors who are a good fit for your business.
Participating in investor Q&A sessions is another way to build rapport with potential investors. These live sessions allow you to ask thoughtful questions, demonstrating your knowledge and curiosity. Following up with the hosts after the event can help you continue the conversation and deepen your connection.
Conducting industry webinars can also showcase your expertise to a broad audience, including investors. Choose a topic that aligns with your expertise and the interests of your target investors and promote the webinar within relevant LinkedIn groups. During the webinar, focus on providing value and highlighting your business's potential to attract investor interest.
6. Showcase your network and recommendations.
A strong network and credible recommendations can significantly boost your appeal to investors. Your connections reflect your reach and influence, while endorsements and recommendations provide social proof of your skills and accomplishments.
Make it a point to connect with industry leaders, successful entrepreneurs, and other investors. The more robust your network, the more likely investors are to see you as well-connected and influential within your industry. Mutual connections with potential investors can also make your outreach efforts more effective, as you can ask for introductions or referrals.
In addition to building your network, actively seek recommendations from colleagues, mentors, and clients. These testimonials can validate your expertise and character, reassuring potential investors. Make sure the recommendations highlight specific achievements, skills, or characteristics that align with what investors are looking for in a promising entrepreneur.
This is a template you can provide to encourage them to give you a review:
"I had the privilege of working alongside [Name] at [Company/Organisation], where their exceptional business acumen and results-driven approach made a significant impact on our team. [Name] consistently demonstrated a deep understanding of [specific area or industry], which allowed us to conquer our challenges and achieve outstanding results. Our business profited both culturally and financially."
To maximise the impact of your network and recommendations, regularly engage with your connections: Congratulate them on milestones, comment on their posts, and share relevant content. This ongoing interaction keeps you on their radar and reinforces your professional relationships.
By following these six steps, you can build a strong LinkedIn presence that attracts investors and opens doors to funding opportunities. Remember, consistency and authenticity in your interactions are key to building lasting relationships that lead to investment opportunities.