Just how easy is it to get business funding on LinkedIn?

With the recent lifting of the ban on general solicitation for investors by the U.S. Securities and Exchange Commission, this has sparked an impact on the field of business especially with the rise of LinkedIn as a network to connect with potential investors. Founder of RockTech, Dave Gowel shared that all 29 investors of his company were all influenced by the massive platform, which clearly shows the huge impact the network holds. It’s not just Gowel who recommends LinkedIn but also plenty others who know how LinkedIn can improve relationships and interactions with investors.

There are several ways to maximize LinkedIn to find investors and get funding for a business. Firstly, the advanced search feature of the website should be utilized, as it allows a user to filter the kind of people he/she needs to connect to. This feature allows a user to hunt for investors by industry, company, location, alma mater, or by using any specific keywords. By using advanced search, a user is able to save time to find the right people to meet.

It is also helpful to follow a potential investor’s company page and by joining the relevant groups to become more involved with the specific industry or target you are interested in. This way, it’s easier to spark a conversation with a potential investor with the right knowledge and understanding of what you’re getting into. However, it can be problematic to jump into a pitch right away with someone you barely know. This is where mutual connections come in; they can help you reach a certain investor and help initiate a conversation. They are also able to give further insight about the specific person or company you are eyeing, which can give you a leverage once you start your pitch.

However, possibly the most important part of trying to get business funding on LinkedIn, is building your own profile and seeing if you are qualified enough to be invested in. Through LinkedIn, a company is able to look at the profile and evaluate the education, work history, salary, savings, cash flow and earning potential, and this gives companies more insight as to whether they’ll invest or not. So before you decide to make a pitch to get funding, assess yourself first and see if you are qualified enough to be invested in.

LinkedIn has definitely grown into something bigger than just a social network for businesses. Users are able to not just build connections with people in the industry, but also establish new businesses and get funding. Their features can be especially helpful for individuals looking for funding, but can also be helpful the other way around with the companies who invest or provide funding. An example of such business that can thrive on LinkedIn could be lending companies who now have access to information on LinkedIn of applicants looking for loans. They are able to evaluate and review before accepting clients. Both business owners and investors will definitely benefit from the features LinkedIn offers