Getting your startup funded is one of the hardest parts of building a business. You’ve probably sent dozens of cold emails, made countless pitches, and waited weeks for responses that never come. The fundraising process can feel like you’re trying to break into an exclusive club where you don’t know anyone.
But here’s the thing: you need to know who the right investors are before you start reaching out. Not all investors are the same, and understanding the different types can save you months of wasted effort.
This guide walks you through 20 types of potential investors for startups, helping you understand the broader investors community and how different investors fit various stages of business growth. Whether you’re just getting started or preparing to scale, you’ll discover investor options that align with your goals, funding needs, and long-term vision.
Understanding Investor Types for Startups
Before we get into the list, let’s talk about what makes each type of investor different. Some invest their own money, others manage funds. Some get involved in day-to-day operations, while others stay hands-off. The key is finding investors who align with where your business is right now.
1. Angel Investors
Angel investors are wealthy individuals who invest their own money into startups, typically during the seed stage when founders are still validating their ideas. Many early-stage founders actively look for resources like a top 20 angel investors for businesses in india list to identify experienced investors who regularly back promising startups across sectors in India.
These investors usually write checks ranging from $10,000 to $500,000. Beyond capital, angel investors often bring entrepreneurial experience, mentorship, and valuable industry connections. Many are former founders who have exited their own companies and are eager to support the next generation of entrepreneurs.
The trade-off is equity. Angel investors typically take 5% to 20% ownership in a company. However, for many founders, the strategic guidance, credibility, and network access angels provide are just as valuable as the funding itself.
2. Venture Capital Firms
Venture capital firms manage pooled funds from institutional investors and high-net-worth individuals, focusing on startups with significant growth potential. Founders often research resources like a top 20 venture capitalist investors in india list to identify firms that actively fund high-growth startups across industries in India.
VC firms usually make larger investments, typically starting in the $3 million to $5 million range. They become involved during Series A rounds and later, when a startup has demonstrated market validation, early traction, and a scalable revenue model.
Venture capitalists don’t just provide capital. They often seek board seats, expect regular performance updates, and push founders to scale aggressively. Their goal is a significant exit through an IPO or acquisition, which means they pursue opportunities capable of delivering high returns.
3. Family Offices
Family offices manage the wealth of ultra-rich families, and they’re becoming major players in startup investing. Almost one-third of the total capital invested in startups worldwide came from family offices in 2022.
What makes family offices different is their patient capital. They’re not under pressure to exit in five years like traditional VCs. They can take a long-term view and support your vision without rushing you.
Family offices typically invest between $500,000 and several million dollars, depending on the stage and opportunity. They often focus on sectors they understand from their operating businesses.
4. Corporate Venture Capital
Corporate VC refers to the investment arms of large companies. Think Google Ventures, Intel Capital, or Salesforce Ventures. These corporations invest in startups for strategic reasons, not just financial returns.
They want access to new technologies, insights into emerging markets, or ways to stay ahead of competitors. If your startup aligns with a corporation’s strategic goals, corporate VC can open doors to partnerships, customers, and resources that pure financial investors can’t offer.
Investment sizes vary widely, from $1 million to $50 million per deal, depending on the stage and strategic importance.
5. Accelerators
Accelerators like Y Combinator, Techstars, and 500 Startups run intensive, short-term programs for early-stage startups. They invest upfront (usually $100,000 to $150,000 for around 6% equity) and provide mentorship, education, and networking over three to six months.
The program culminates in a demo day where you pitch to investors. Companies will raise $1-2 million as a result of Demo Day on average.
Getting into a top accelerator is competitive, with acceptance rates around 1% to 3%. But if you get in, you’ll join a network of alumni, mentors, and investors that can support your growth for years.
6. Incubators
Incubators support even earlier-stage startups than accelerators. If you’re still figuring out your business model or just have an idea, an incubator might be right for you.
Incubators provide physical office space, resources, and ongoing support over longer periods (often one to five years). They’re less intense than accelerators and more focused on helping you develop your foundation.
Some incubators are nonprofit organizations that support local innovation ecosystems. Others are run by universities or corporations. They may offer grants, loans, or equity investments depending on their structure.
7. Seed Funds
Seed funds specialize in the earliest funding rounds, right when you’re getting started. They bridge the gap between angel investors and larger VC firms.
These funds typically invest $250,000 to $2 million at the pre-seed and seed stages. They’re comfortable with high risk because they know most startups fail, but the winners make up for the losses.
Seed funds often have deep expertise in specific sectors and can connect you with follow-on investors for future rounds.
8. Growth Equity Investors
Growth equity comes later in your journey. These investors target companies that already have proven business models and are generating revenue.
Unlike early-stage VCs, growth equity investors aren’t looking to establish your market presence. They want to help you scale what’s already working. Investments are typically larger, often $10 million and up.
Growth equity is less dilutive than earlier rounds because your valuation is higher. But investors will still want equity and probably a board seat.
9. Micro VCs
Micro VCs are smaller venture capital firms with fund sizes typically under $50 million. They invest in very early stages, often at pre-seed and seed.
What makes micro VCs attractive is their flexibility. They move faster than large firms, they’re more hands-on with founders, and they can invest in opportunities that big VCs might overlook.
Check sizes range from $25,000 to $500,000 per investment, making them a good middle ground between angels and traditional VCs.
10. Strategic Investors
Strategic investors are companies or individuals who invest because your startup complements their existing business. Unlike financial investors who only care about returns, strategic investors want synergies.
For example, a software company might invest in a startup building complementary tools they can bundle with their products. Or a retailer might invest in e-commerce technology they plan to use.
Strategic investors can become your biggest customers or partners, but be careful about alignment. If their strategy changes, they might lose interest in your success.
11. Institutional Investors
Institutional investors like pension funds, endowments, and insurance companies provide the bulk of capital for many VC funds. They’re the limited partners who back the general partners running the funds.
You won’t pitch institutional investors directly as a startup. They invest in funds, not individual companies. But understanding that VCs answer to institutional investors helps you see why VCs have certain expectations around returns and timelines.
12. Crowdfunding Investors
Equity crowdfunding platforms like Republic, Wefunder, and SeedInvest let you raise money from hundreds or thousands of small investors online.
Instead of convincing one wealthy angel or VC firm, you build a community of supporters who each invest smaller amounts (sometimes as little as $100). This democratizes access to startup investing and lets everyday people back companies they believe in.
Crowdfunding works well if you have a consumer-facing product or a compelling story that resonates with regular people. You’ll need to run a marketing campaign to attract investors, which takes time and effort.
13. Venture Studios
Venture studios (also called startup studios) are organizations that create and build startups from scratch. Unlike accelerators that accept external applications, venture studios generate ideas internally and hire founding teams.
Studios like Atomic, Flagship Pioneering, and AlleyCorp provide funding, resources, and expertise from ideation through product development and early growth. Studio partners often stay on as co-founders.
If you’re a talented operator looking for a co-founder with resources and experience, a venture studio could be your launching pad.
14. Corporate Accelerators
Corporate accelerators are programs run by large companies to work with startups in their industry. They combine elements of traditional accelerators with strategic investment.
For example, Microsoft has accelerator programs for startups building on Azure, while Barclays runs programs for fintech companies. You get mentorship, potential pilot customers, and often an investment.
The trade-off is that corporate accelerators may have restrictions. They might want first rights to acquire your company or require you to use their platforms.
15. Government Funds and Grants
Many governments offer funding programs to support innovation and economic development. These can be grants (non-dilutive) or loans with favorable terms.
The Small Business Innovation Research (SBIR) program in the U.S. gives millions in funding to startups working on technology for federal agencies. Similar programs exist worldwide.
Government funding takes time to secure (lots of paperwork and bureaucracy), but it’s non-dilutive. You don’t give up equity, which is huge for early-stage founders.
16. Friends and Family
Before you approach professional investors, many founders raise their first money from friends and family. These people know you, trust you, and want to see you succeed.
Friends and family rounds are usually smaller (under $100,000 total) and come with simpler terms. You might offer equity or structure it as a loan.
Be careful here. Mixing personal relationships with business can get messy if things don’t work out. Make sure everyone understands the risks.
17. Revenue-Based Financing Providers
Revenue-based financing (RBF) is an alternative to equity funding. Instead of giving up ownership, you agree to pay back a percentage of your monthly revenue until the investor gets their money back plus a return.
RBF works well for profitable businesses that need capital to grow but don’t want to dilute their ownership. Platforms like Lighter Capital and Clearco specialize in revenue-based deals.
The downside? Monthly payments can strain your cash flow, especially during slow months.
18. Private Equity Firms
Private equity (PE) firms typically invest in mature companies, not early-stage startups. But some PE firms have growth equity arms that invest in later-stage startups.
PE investments are large (often $50 million and up) and usually involve taking a majority stake or buying the company outright. If you’re at this stage, you’re probably already profitable and looking to scale dramatically or prepare for an exit.
19. Angel Groups and Syndicates
Angel groups are networks of angel investors who pool their resources to make larger investments together. Groups like Tech Coast Angels or Golden Seeds meet regularly to hear pitches and decide which startups to back.
Syndicates work similarly but are often formed on a deal-by-deal basis. A lead investor finds an opportunity, and other angels can choose to participate. Platforms like AngelList pioneered the syndicate model.
Pitching a group means convincing multiple investors at once, which can be more efficient than meeting angels individually.
20. Impact Investors
Impact investors want financial returns and positive social or environmental outcomes. They back startups working on challenges like climate change, education, healthcare access, or poverty reduction.
These investors measure success not just in dollars but in impact metrics. If your startup has a mission-driven component, impact investors might be your ideal partners.
Organizations like Omidyar Network and Acumen Fund are well-known impact investors. Many family offices are also shifting toward impact investing.
How Tablon Helps You Connect With the Right Investors
Now that you know the types of investors, the next challenge is actually meeting them. That’s where platforms like Tablon come in.
Tablon helps you find startup investors fast, connecting with 100+ investors online through their active community. Instead of sending cold emails that go unanswered, you can attend networking dinners where you meet investors face-to-face.
The platform focuses on connecting founders raising $2 million or less with angel investors, VCs, and other early-stage investors. You’re not just throwing your pitch into the void; you’re building real relationships.
Tablon also offers one-on-one meetings with investors, giving you a chance to get feedback on your business and potentially secure follow-up meetings. For founders struggling to break through the noise, this direct access can be game-changing.
Choosing the Right Investor for Your Stage
Not every investor is right for every startup. Here’s how to think about matching:
- Pre-seed and idea stage: Friends and family, angel investors, incubators, government grants, crowdfunding.
- Seed stage: Angel groups, seed funds, accelerators, micro VCs, corporate VCs (for strategic fit).
- Series A and beyond: Venture capital firms, corporate VCs, family offices (for patient capital), growth equity (later stages).
- Already profitable: Revenue-based financing, growth equity, private equity.
Your industry matters too. If you’re building biotech, look for investors with healthcare expertise. If you’re in fintech, corporate VCs from banks or payment companies might be strategic.
Geography can be a factor. Some investors only invest locally. Others go global. Platforms like Tablon can help you navigate these dynamics by connecting you with the right investors in your region.
Red Flags to Watch For
Not all money is good money. Here are warning signs to watch for when evaluating investors:
- They rush you to sign. Good investors do due diligence and take time to understand your business. If someone wants to close immediately without questions, be suspicious.
- Unrealistic promises. If an investor guarantees they’ll 10x your valuation next round or promises connections they can’t deliver, walk away.
- Misaligned expectations. An investor who wants to flip your company in two years when you’re building for the long term will create conflict down the road.
- No track record. First-time investors might mean well, but they may not understand how startup investing works. That can lead to problems when things get tough.
- Bad references. Always talk to other founders who’ve taken money from an investor. If they won’t provide references or the feedback is negative, that’s your answer.
Building Relationships Before You Need Money
The best time to start building investor relationships is before you need money. Go to events, engage on social media, and ask for advice (not money) when you’re early in your journey.
Investors back founders they know and trust. If they’ve watched you build for six months or a year before you raise, they’re more likely to invest when the time comes.
This is where networking platforms and events, like those offered by Tablon, become valuable. You’re not just pitching; you’re becoming part of a community where investors can see your progress over time.
What Investors Actually Look For
Every investor has their own criteria, but most look for similar things:
- Strong founding team. Investors bet on people first. They want founders who can execute, pivot when needed, and build great teams.
- Market opportunity. Is the market big enough to support a venture-scale business? Can you reach $100 million in revenue or more?
- Traction. What evidence do you have that customers want your product? Revenue, user growth, and engagement metrics all matter.
- Competitive advantage. What stops someone else from copying you? Network effects, technology, brand, or distribution advantages can all be moats.
- Clear use of funds. What will you do with the money, and how will it move the business forward? Investors want to see that their capital will unlock growth.
Closing Thoughts
Raising money is hard, and it can feel like you need an inside track to get anywhere. The truth is that successful fundraising comes down to three things: knowing your options, building relationships, and persistence.
This list of 20 investor types gives you a starting point. Not all will be relevant to your startup, and that’s okay. Focus on the two or three categories that match your stage and industry, then go deep on building connections there.
Remember that platforms like Tablon exist to make this easier. Instead of figuring out networking on your own, you can tap into communities designed to connect founders and investors. The more you show up, the more chances you have to find the right partner for your journey.
Now get out there and start building those relationships. Your future investors are waiting to hear from you.
Frequently Asked Questions
What type of investor is best for early-stage startups?
For early-stage startups, angel investors and seed funds are usually the best fit. Angel investors invest between $10,000 and $500,000 during the seed stage, and they often bring mentorship and industry connections along with capital. Seed funds specialize in early rounds and typically invest $250,000 to $2 million. Accelerators like Y Combinator or Techstars are also excellent for early-stage founders because they provide both funding and intensive mentorship programs.
How do I find investors who match my industry?
Start by researching which investors have previously funded companies in your sector. Most VC firms and angels list their portfolios on their websites or platforms like Crunchbase. Attend industry-specific events and conferences where investors focused on your space gather. Platforms like Tablon can also connect you with investors who have experience in your industry through networking dinners and one-on-one meetings.
What’s the difference between accelerators and incubators?
Accelerators run intensive, short-term programs (three to six months) for startups that already have a minimum viable product. They provide mentorship, networking, and usually invest upfront in exchange for equity. Incubators support even earlier-stage startups over longer periods (one to five years), often providing office space and resources for founders who are still developing their ideas and business models.
How much equity do investors typically take?
Angel investors usually take between 5% and 20% equity, while venture capital firms often require larger stakes, sometimes up to 50% depending on the funding round and stage. Accelerators typically take around 6% to 7% for their investment and program participation. The exact amount varies based on your valuation, how much you’re raising, and market conditions. Always negotiate terms carefully.
Do I need to give up equity to get startup funding?
Not always. While most traditional investors (angels, VCs, accelerators) take equity in exchange for their investment, alternatives exist. Government grants are non-dilutive, meaning you don’t give up ownership. Revenue-based financing providers give you capital in exchange for a percentage of your monthly revenue until they’re repaid, without taking equity. Some incubators offer grants or loans instead of equity investments.
