How to find sponsors for your startup: 5 ideas

It is common knowledge that starting and even developing a company requires a lot of capital. While it’s possible to use your own savings or credit, most owners need outside capital to significantly grow their business. Sponsors can offer startups the funds they need to scale up their operations, acquire talent, or introduce latest products and services to the market.

In addition to providing the vital funding, suitable sponsors also provide credibility, connections and marketing opportunities. Having a reputable sponsor for your startup means you’ll encounter less resistance and gain more opportunities.

However, looking for startup sponsors is not as easy because it could seem. To persuade people to invest in a latest business enterprise, you would like the right tone, contacts and determination. In this text, we try to outline five best practices for finding sponsors that may make it easier to scale your business.

Why startups look for sponsors

Before diving into tactics, it is vital to understand why early-stage corporations actively seek sponsors and what those sponsors bring to the table.

Get financial support

Ninety percent of startups fail in the future. In other words, the survival rate of traditional startups is just 1 of 10 at last. One of the most typical reasons is lack of monetary resources.

The most evident profit that sponsors provide is direct financial support. An injection of external capital allows start-ups to start their basic operations and finance development plans. Sponsors help cover costs equivalent to:

• Hiring key employees and advisors
• Office space and equipment
• Supplies and materials
• Software, tools and services
• Research and development
• Marketing and promoting

Without adequate financing, most startups do not achieve significant dynamics. But with the right sponsors, you’ll be able to ensure sustainability.

Increase your startup’s visibility and credibility

In competitive markets, consumers and business partners need to pay attention to and trust the brand to run a sustainable business. This is shown in the Lucidpress report revenues can increase by up to 23% when brands are aligned across all channels. However, for a newcomer, a startup, gaining recognition and due to this fact gaining people’s trust is a difficult task.

But by working with respected, established sponsors, you immediately profit from their goodwill and credibility. Smart startups make sure to promote sponsor partnerships on their website, in press releases, on product labels and elsewhere. This changes the loyalty and association of your sponsors’ names with your latest brand, which is still unknown on the market.

However, over the years, startup founders have to prove their value. However, sponsor credibility provides immediate credibility that may make it easier to reach potential customers, business partners and talent.

Grow and grow your startup at scale

Finally, the right sponsors don’t just write a check and walk away. They have a vested interest in seeing your startup reach its full potential. Many of them provide practical value that dramatically accelerates growth, equivalent to:

• Strategic consulting and mentoring
• A warm introduction to their network
• Distribution or sales support
• Co-marketing partnerships
• Seats on boards and management

Generally, respected sponsors can guide startups through the process inevitable growing pains scale easily and strategically. Their knowledge and contacts enable founders to punch above their weight class at an early stage.

How to find sponsors for your startup

Now that the enormous value of startup sponsors is clear, how do entrepreneurial founders actually provide this significant support? Use these proven suggestions and tactics to connect with potential sponsors.

1. Invest in a well-made deck design

Your sponsorship pitch is one of the key touchpoints for attracting funding for your startup. This visual presentation quickly conveys the core business concept, current traction and future potential.

Given the limited time available to meet with potential sponsors, your deck needs to immediately grab and hold their attention. Here are some key presentation suggestions:

• Lead with a powerful, benefits-oriented slogan
• Highlight large market opportunities
• Share evidence of early business success
• Present your startup’s unfair advantage
• Provide realistic financial projections
• End with a clear call to motion

Also consider employment skilled pitch deck designers who can make it easier to prepare a presentation with all the details to find sponsors. Visually appealing slides with intelligent use of colours, photos, charts and layouts make a higher impression than plain text-heavy decks.

2. Become a area of interest speaker at industry events

Industry conferences and seminars provide excellent networking opportunities with many potential startup sponsors under one roof. However, random work in the halls is unlikely to attract their interest.

Instead, apply to attend relevant events. Deliver a compelling talk on a hot area of interest topic that aligns with your startup’s interests. Conference organizers are at all times looking for fresh speakers with unique perspectives.

If you are elected, you immediately elevate your brand and credibility among participants. Additionally, listeners actively contact speakers after the presentation for further discussion. This gives you excellent access to communicating your startup’s mission, and the sponsor asks influential figures who are really interested in your perspective.

3. Rely on your network and partners

In addition to calling potential sponsors, reach out to contacts you already know and are hopefully confident in your options. Ask colleagues, advisors, investors, customers, suppliers, friends and family to introduce sponsors to their networks.

With a direct referral, you may bypass the cold lead and qualify for warmer conversations with these sponsors. This will get you in the door faster, armed with social proof from a contact they know and trust.

You also can explore sponsorship opportunities with existing partners deeply invested in your success, equivalent to key investors, advisors or suppliers. They already imagine in your vision and want to profit from your development.

4. Try crowdfunding platforms

Popular crowdfunding platforms like Kickstarter, Indiegogo and GoFundMe allow startups to raise smaller chunks of capital from on a regular basis “crowds” relatively than institutions or wealthy individuals. According to Bloomberg Live, there is a global crowdfunding market expected to reach $300 billion by 2025indicating a significant trend towards alternative methods of financing start-ups.

However, beyond funding, many crowdfunding sponsors also support the startups they work with to gain early access to modern products and services. Most campaigns offer sponsors various advantages with increasing levels of contribution.

So as a substitute of asking for money, treat crowdfunding as a way to build an engaged community around your brand. This viral momentum attracts broader sponsor attention, not only initial sponsors.

5. Spy on other startup competitors

Research direct competitors and similar startups in adjoining spaces that they have successfully secured external sponsorship. Research their funding history, sponsors, pitch messages, sponsor advantages packages, and other aspects that likely led to the partnership being finalized.

Then analyze whether any of their supporters also serve related industries and customer profiles where your differentiated offerings may be mutually useful. This secondary research sharpens the sponsor’s targeting and value proposition arguments.

You can legally use your competitors’ public information to model what works and improve your own sponsorship efforts. Just don’t cross ethical lines into plagiarism or misrepresenting your strengths as equivalent to those of your competitors down the line.

Application

Sponsors act as the fuel that propels startups from ineffective disruptors to becoming stable industry participants. Their capital, skills and networks of contacts enable the financing and development of enterprises at a very rapid pace.

However, attracting startup sponsors takes much greater than just asking for funds. It is vital to develop a compelling vision and value proposition for potential investors who will see tangible advantages from their investments. This requires critical evaluation, strategic placement, resilience and networking skills.