As a new or existing small business in Canada, you have multiple ways to obtain the necessary funding to support your business expenses.
In this quick guide, we will outline the steps and methods for reaching out to private investors and venture capitalists so you can introduce yourself, your business model, and your funding needs in hopes of securing the capital required.
Investors, much like banks or government agencies, provide funding to businesses that are well-prepared, have a unique idea, demonstrate potential, and can present a complete business plan while following proper instructions.
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Before you reach out and apply for private investor funding, ensure you have the following:
- A Completed Business Plan
A strong business plan is essential. With a clear and detailed plan, you are preparing for success. The quality of your business plan shapes how investors view you.
If you do not yet have your business plan completed, it is recommended to create one. As a member of CanadaStartups.org, you have access to the Business Plan Builder Tool and experts who can guide you through the process.
A detailed business plan should include:
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Explanation of the business model
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A detailed market analysis (customers, market, competition, etc.)
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Marketing plan
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Growth strategy
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Detailed breakdown of your funding needs
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Accurate projected financials
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A PitchDeck Presentation
Private investors love efficiency—and they’re busy. A PitchDeck is exactly what they want to see. These short 10–15 slide presentations outline your business model, growth strategy, funding needs, and other key details in a visually appealing format.
Think Shark Tank.
A properly designed PitchDeck makes it easy for investors to quickly understand your business and decide if they want to move forward. It is often the preferred first step before reviewing a full business plan.
If you do not yet have a PitchDeck, we recommend working with a CanadaStartups.org expert who can guide you or have the design team create a customized investor-ready PitchDeck for you.
How to Find a Good Private Investor
A private investor can be anyone—your neighbour, a friend, a family member, a business owner, or simply someone with capital looking to invest.
However, every investor has one goal: to make money.
Not all private investors are the same. You should always research an investor or investment firm before accepting their funds to ensure they are a good fit for your business.
Investors may offer funding in different ways:
- Equity (ownership or profit share)
- Monthly repayment arrangements
- Interest-based investments
- Deferred profit sharing (only when the business sells or reaches a milestone)
Consider these factors when evaluating potential investors.
How Do You Find the Right Investor?
Look for investors who understand your industry and share your vision—not just those who have money.
Go in knowing exactly what you want:
- How much funding you want
- What you want the funds for
- What role you want the investor to play (active or silent)
For guidance on choosing the right investor or investor personality type, speak with your CanadaStartups expert.
How Much Should You Ask For?
The big question: how much money should you ask a private investor for?
While you might want millions, this is unrealistic for most early-stage businesses.
Your request should be based on how much you actually need—not want.
Calculate your expenses and determine what you cannot cover on your own. That total becomes your funding request.
Some investors may fund the full amount, others only a portion. Many investors also offer staged funding, where more money is made available as your business grows—similar to an on-call line of credit.
Your PitchDeck and business plan must clearly outline:
- How much funding you need
- What you need it for
- When you need it
If you need help determining your funding requirements, your CanadaStartups expert can assist.
Is a Private Investor Right for Your Business?
Private investors are not the right option for everyone.
They use their own money to invest in your business, so they expect seriousness, repayment (depending on deal type), and potential for success.
If you want a more “stress-free” option, consider family/friends, your own credit, or government funding programs.
Investors typically look for opportunities with:
- High growth potential
- Brand recognition opportunities
- A unique or innovative concept
- Strong expansion possibilities
And importantly—investors generally do not consider very small funding requests.
For example:
If you’re looking for $1,500 or even $10,000, a private investor is not the right fit.
Private investors typically fund:
- $20,000 – $50,000
- $50,000 – $100,000
- $100,000 – $500,000
- $500,000 – $1,000,000+
Work with CanadaStartups to determine whether a private investor is the right option for your business.
How Does the Process Work?
The process of working with a private investor can be divided into four steps:
- Introduction
- Business Model Review
- The Pitch
- The Funds
1. Introduction Stage
This is the first and most important step—how you initiate contact. Each investor has a preferred method of communication (email, phone, social media, website form, etc.). Follow it closely.
2. Business Model Stage
If the investor responds, they may request your business plan or PitchDeck. They will review everything and may ask follow-up questions.
Ensure your business plan and PitchDeck are complete, polished, and r