Show Us The Moolah: Peking Duk's guide on how to score funding for your business

If anyone knows what it’s like to be tight on cash, it’s us. When we first moved to the city we were borrowing rent money off our housemate and even fighting over mi goreng.

Running a business is exciting and very spooky at the same time — banks aren’t always too keen on lending money to noobs (like us). But private investors are willing to back us startups when the suits won’t. 

Here are the different types of business investors you can hit up to score funding

1. Angel investors

These ballers invest their own money in exchange for convertible debt or ownership equity. Basically, the Monopoly guy bankrolling it and getting a stake in your business. 

They're all about growth and might want a say in big decisions. Make sure to vibe with the right ones for your biz! 

2. Venture capitalists (VCs)

They're like team leaders with money from various clients, ready to invest in hot startups that are likely to take off. 

They typically invest bigger sums into later-stage startups that have significant growth potential, so this might be one for a bit further down the track.  

3. Accelerators and incubators

Think of these peeps as the growth gurus. They help develop your business while also providing some of the moolah. 

Accelerators are focused on scaling businesses they believe have potential rather than on innovation and providing the initial seed funding to start a business. 

4. Equity crowdfunding

Legit just kickstarting, except instead of getting a thank you email, the ‘donors’ (investors) become stakeholders.  

This is better if you’re selling to the public, as opposed to other businesses.  

5. Friends and family

Quick money, not regulated. It’s not all silver spoons and rattles though; the big drawback of this type of investment is that it can get messy if you’re not careful.  

We definitely recommend you formalise the agreement to avoid awkwardness at the next Christmas dinner.  
 

So where do you find these money bags, you ask? 

Probably somewhere on the Northern Beaches …  

1. Business incubators

Join these co-working spaces for startups where you can get advice, mentoring and meet other budding entrepreneurs. 

2.Banks

Yup, your bank might know some equity funders or VC firms. 

3. Accountants

These peeps might know angel investors or past clients who've gotten funding. 

4. Crowdfunding platforms

Spread the word about your biz and either get donations or offer shares. 

Here’s the top 5 crowdfunding websites in Australia: 

• MyCause 
• GoFundraise
• Pozible 
• Equitise 
• VentureCrowd 

5. Networking events

Not boring, we promise! Meet potential investors at industry events, chambers of commerce, co-working spaces and more.  

6. Pitch nights

It’s as simple as it sounds. Show off your idea to investors, partners and customers to get some buzz going. 
 

So many options we know. Here's how to choose the right investor for you

The right investor can bring way more than just the cash to your business — they can share their industry knowledge and experience and introduce you to relevant people to help grow your business. 

Your ideal investor will be: 

• Local — so you can reach them, and they won't forget you (key!) 
• Knowledgeable — so you can benefit from their industry experience and contacts 
• Connected — so they can put you in touch with the right people
• Committed — so they’ll stick with you for the long term 
  
  

So what do these investors wanna know, you ask? 

Investors are looking for a purposeful investment likely to make a good return. Here’s what they want to know about your business: 

1. Business plan: Show 'em you mean business! A solid plan is the first step. 
2. Business model: Prove how your biz will rake in profits. 
3. Company differentiators: What makes you stand out? Share your unique selling point! 
4. Team members: Investors want to know they're backing a dream team. 
5. Financial records: Be transparent with your cashflow and projections. 
6. Growth prospects: Show 'em the potential for expansion and how they'll make bank. 
7. Method of return: Investors want a return on investment, so let 'em know your plan. 
8. Investment structure: Get that valuation right and lawyer up for an airtight agreement. 
9. Exit plan: Think long term — investors need to know how they'll cash out.  

With the help of this guide, you’ll be able to find and woo investors and score funding in no time — go get ‘em! 

We believe in you! Keep track of your business with the MYOB business management platform. It's a game-changer and sets you up for success.  

Take the headache out of business and focus on the good stuff, get started with MYOB Business Lite from just $5 per month for 6 months, normally $30 per month*.