How to find investors for your business

Published Monday 11 May 2026

Table of contents

• Is equity financing right for your business?
• Types of investors you should know
• How to find investors: 6 steps
• Where to find investors in the UK
• What makes a good investor for your business?
• What investors want to know about your business
• How to impress potential investors
• How to protect your business when seeking investors
• Get your finances investor-ready with Xero
• FAQs on how to find investors

Key takeaways

• Equity financing means selling shares in your business to raise funds, so check you have the right business structure and understand what you're giving up before approaching investors.
• Different investor types suit different stages of growth, from friends and family at the earliest stage through to venture capital firms for businesses ready to scale fast.
• Finding the right investor takes preparation: define your funding needs, research your options, build your network, and protect your interests before signing any deal.
• The UK has a strong funding landscape, including angel networks, crowdfunding platforms, government-backed programmes, and accelerators designed to support small businesses.

Is equity financing right for your business?

Equity financing involves selling shares in your business to raise capital. It's not the right fit for every business, so it's worth understanding whether this route suits your goals and structure before you start looking for investors.

Sole traders can't sell shares, so you'll need to be registered as a limited company (or sell an interest in a partnership). If you're not already set up this way, consider whether changing your business structure makes sense. You can learn more about the differences between debt and equity financing to help you decide. If equity isn't the right fit, you might also explore how to get a business loan as an alternative.

How much equity should you give away?

Every share you sell reduces your ownership, so think carefully about how many investors you want to bring on. Having a large number of shareholders early on might put off bigger investors later.

Consider how equity financing fits alongside any debt funding you already have or plan to take on. Balancing both types of funding helps you keep enough control over your business while still raising what you need.

Know your business valuation

Before approaching investors, get a professional business valuation. This tells you exactly what your business is worth and what you're giving up in exchange for funding. Without a clear valuation, you risk selling shares for less than they're worth.

Get professional advice

Talk to a solicitor and an accountant before committing to equity financing. They can explain the legal and financial implications, including any regulations you'll need to follow.

In the UK, equity crowdfunding platforms are regulated by the Financial Conduct Authority (FCA). If you're raising funds through the Seed Enterprise Investment Scheme (SEIS) or Enterprise Investment Scheme (EIS), your advisors can help you structure deals that qualify for these tax relief programmes.

Types of investors you should know

Not all investors offer the same type of support, funding level, or terms. Understanding the main types helps you target the right ones for your business stage and goals.

Friends and family

Many business owners start here, either as a first option or when other funding isn't available. Friends and family may be more patient about returns and less likely to push for a quick exit. Keep things professional by putting agreements in writing, even with people you trust.

Typical investment: varies widely, but usually smaller amounts at the earliest stage of a business.

Angel investors

These are wealthy individuals who invest their own money in exchange for a share of your business. Angel investors often bring industry experience, contacts, and mentorship alongside their funding.

In the UK, angel investors can benefit from SEIS and EIS tax relief, which makes investing in early-stage businesses more attractive. Typical investments range from £10,000 to £500,000, and angels generally suit businesses that have moved beyond the idea stage but aren't yet ready for venture capital.

Equity crowdfunding

Crowdfunding platforms let you raise funds from the public in exchange for unlisted shares in your business. This approach works well for consumer-facing products or services with a strong story or a product or service that stands out. You can find out more about how crowdfunding works and whether it suits your business.

UK platforms like Seedrs and Crowdcube are regulated by the FCA. Campaigns typically raise between £50,000 and £1 million, though some go higher.

Venture capital firms

Venture capital (VC) firms invest their clients' money in exchange for a substantial share of your business. They tend to focus on companies with the potential for rapid, large-scale growth and often want significant involvement in strategic decisions.

VC funding typically starts at £500,000 and can reach several million pounds. This type suits businesses that have proven their model and are ready to scale quickly.

Business incubators and accelerators

Incubators support early-stage businesses with workspace, mentorship, and resources. Accelerators focus on scaling businesses that already show potential, and they're more likely to offer seed funding in exchange for equity.

Many UK accelerators have a technology focus, though programmes exist across a range of industries. Notable examples include Techstars London, Seedcamp, and Entrepreneur First.

How to find investors: 6 steps

Finding the right investor takes a structured approach. These six steps guide you from working out what you need through to closing a deal that works for both sides.

1. Define your funding needs and timeline. Work out exactly how much you need to raise, what you'll spend it on, and when you need it by. This clarity shapes every conversation you'll have with potential investors.
2. Research the right investor type for your stage. Match your business stage and sector to the investor types above. A pre-revenue startup will approach different people than a business turning over £1 million a year.
3. Prepare your pitch and business plan. Put together a solid business plan, a concise pitch deck, and up-to-date financial projections. Investors expect to see clear numbers and a credible growth strategy. Read more about pitching for business funding for detailed guidance.
4. Build your network and attend events. Go to industry meetups, pitch competitions, and investor networking events. Personal introductions often carry more weight than cold approaches.
5. Use online platforms and directories. Register on angel investor networks, crowdfunding platforms, and VC directories. Many investors actively browse these platforms looking for opportunities.
6. Evaluate offers and protect your interests. Compare the terms, expectations, and involvement level of each offer. Take legal advice before signing anything, and make sure you're comfortable with how much control you're giving up.

Where to find investors in the UK

The UK has a well-developed funding landscape with a range of options for small businesses at every stage. Here are some of the best places to start your search.

Angel networks

Angel networks connect business owners with individual investors. The UK Business Angels Association (UKBAA) is the main trade body, and the Angel Investment Network is one of the largest online platforms. Many regions also have local angel groups, so check what's available in your area.

Crowdfunding platforms

Seedrs and Crowdcube are the two leading equity crowdfunding platforms in the UK. Both are FCA-regulated and let you raise funds from a broad base of investors while building a community around your business.

Venture capital directories

The British Private Equity and Venture Capital Association (BVCA) maintains a directory of VC firms operating in the UK. You can filter by sector, stage, and investment size to find firms that match your business.

Government-backed programmes

The British Business Bank supports small businesses through a range of programmes, including the Start Up Loans scheme. SEIS and EIS offer tax relief to investors who back qualifying early-stage businesses, making your proposition more attractive to angels and other private investors.

Accelerators and incubators

UK-based accelerators like Techstars London, Seedcamp, and Entrepreneur First offer funding alongside mentorship and industry connections. Many run regular cohort intakes, so check application deadlines early.

Networking events and pitch competitions

London Business Angel events, regional pitch competitions, and industry conferences are good places to meet investors face to face. Check platforms like Eventbrite and Meetup for upcoming events in your area.

Online platforms

LinkedIn is useful for identifying and connecting with investors in your sector. AngelList (now Wellfound) also lists UK-focused investors and startup funding opportunities.

What makes a good investor for your business?

The right investor offers more than just money. They bring experience, connections, and commitment that can make a real difference to your business. Before accepting any offer, consider whether the investor is genuinely a good fit.

Look for investors who are:

• Accessible: based locally or willing to stay actively involved, so they don't lose sight of your business
• Experienced in your industry: so they understand your market, share your enthusiasm, and bring useful contacts
• Well connected: so they can introduce you to potential customers, suppliers, advisors, and other investors
• Committed for the long term: so they'll support you through the ups and downs, not just the early wins

A good investor can introduce you to new customers, reliable suppliers, solicitors, accountants, other investors, and media contacts. That kind of support often proves just as valuable as the funding itself.

What investors want to know about your business

Investors want to see that you'll make money for them. Understanding what they're looking for helps you present a far more convincing pitch.

Here's what most investors will want to know:

• Growth potential: Investors take a bigger risk than a bank, so they expect bigger rewards. They want to back businesses they believe could grow significantly.
• How involved they can be: Most investors want to protect their money by helping the business grow. They'll need reassurance that you'll listen to their advice and act on it.
• Return on investment: They're investing to get a return, either through dividends or an increase in the value of their shares. You need to show a clear path to one or both of these outcomes.
• Your personal investment: If you haven't put your own money into the business, investors will question your commitment. Be prepared to show you have skin in the game.
• Your exit plan: Let them know whether you plan to build and sell the business quickly, or grow it over the long term. There's nothing wrong with either approach, but investors want to know your intentions upfront.

How to impress potential investors

Showing up prepared signals that you're serious about your business and capable of running it well. Here's how to make a strong impression at every stage of the process.

Build a strong pitch deck

Your pitch deck is often the first thing an investor sees, so it needs to be clear, concise, and compelling. Cover the problem you're solving, your solution, your target market, your business model, traction to date, and what you're asking for. Keep it to 10–15 slides.

Prepare solid financial projections

Investors expect to see realistic financial forecasts that show how your business will grow and generate returns. Include revenue projections, cash flow forecasts, and a clear breakdown of how you'll use the funding. Keeping your accounts accurate and up to date with tools like Xero makes this process much smoother.

Tell a compelling story

Numbers matter, but so does narrative. Explain why you started the business, the problem you're passionate about solving, and where you see it going. A strong story helps investors connect with your vision on a personal level.

Be transparent about risks

Every business carries risk, and investors know that. Being upfront about challenges, competitors, and potential obstacles actually builds trust. Show that you've thought about what could go wrong and how you'd handle it.

Do your homework on the investor

Research each investor's background, portfolio, and interests before you meet. Tailor your pitch to show why your business fits their investment strategy. Ask about their plans too: where they see the business going and how involved they want to be.

Check your online presence

Potential investors will look you up online. Make sure your company website, social media profiles, and any public reviews reflect well on your business. A strong online presence with an engaged audience signals growth potential.

Be thorough with paperwork

Take the time to prepare all necessary documents and complete everything investors ask for. Send materials ahead of meetings so they have time to review. Being organised and responsive shows you'll run the business the same way.

How to protect your business when seeking investors

Sharing detailed information about your business is a necessary part of attracting investment. Taking a few precautions helps you do that confidently without putting your business at risk.

Protect your intellectual property

File any necessary patents, trademarks, and copyright registrations before you start sharing your ideas with potential investors. This gives you legal protection and shows investors that you take your business seriously.

Use non-disclosure agreements

A non-disclosure agreement (NDA) sets clear boundaries about what investors can and can't share. Not every investor will sign one, but having one ready shows you understand the value of your information.

Get a shareholder agreement in place

A shareholder agreement sets out the rights and responsibilities of everyone involved. It covers things like decision-making power, dividend policies, and what happens if someone wants to sell their shares. Have a solicitor draft this before you bring investors on board.

Understand legal due diligence

Investors will carry out due diligence on your business, and you should do the same on them. Check their track record, speak to other founders they've invested in, and make sure their values align with yours.

Set clear terms and expectations

Agree on the key terms of the deal upfront: how much equity you're offering, what level of involvement the investor will have, and what the exit expectations are. Putting everything in writing reduces the chance of disagreements later.

Get your finances investor-ready with Xero

Investors want to see accurate, up-to-date financial records before they commit. Xero's online accounting software helps you track cash flow, manage invoices, and generate clear financial reports, so you can present your business with confidence when it matters most.

Whether you're preparing for your first pitch or your fifth funding round, having your finances in order makes the process smoother and faster. Get one month free and see how Xero can support your business as it grows.

FAQs on how to find investors

Here are some frequently asked questions about finding investors for your business.

How long does it take to find an investor?

Finding the right investor typically takes three to six months, though it can be longer for first-time fundraisers. The timeline depends on how prepared you are, how strong your network is, and how many investors you approach. Starting your search well before you need the money gives you more negotiating power.

What do investors look for before investing?

Most investors want to see strong growth potential, a clear business plan, realistic financial projections, and evidence that you've invested your own time and money. They also look for a capable team, a well-defined target market, and a credible exit strategy.

How much equity should I give an investor?

There's no fixed answer, but most early-stage businesses give away between 10% and 25% in a first funding round. The right amount depends on your valuation, how much you're raising, and how much control you want to keep. Get professional advice before agreeing to terms.

Where can I find angel investors in the UK?

The UK Business Angels Association (UKBAA) and the Angel Investment Network are two of the largest directories. Regional angel groups, industry-specific networks, and platforms like LinkedIn are also good starting points. If you're eligible for SEIS or EIS, highlight this to attract tax-conscious investors.

Do I need a business plan to attract investors?

Yes. A clear, well-researched business plan is one of the first things investors will ask for. It shows you understand your market, have a strategy for growth, and know how you'll generate returns. Pair it with a concise pitch deck for meetings and presentations.