Startup investors aren’t benevolent angels; they’re searching for certain cues to persuade them to part with their money. There are certain factors that startup founders need to be prepared for when trying to raise investments for their company.
Startup owners are continuously looking for the right connections, be it the right networking contact or a credible person who can introduce them to the right investor. However, End of the day, it’s not about who you know but more about what you’ve got…!!! One harsh reality is there is no shortcut to funding, investors know better about the market and the chances of a startup to become successful. Accordingly, investors are careful and sceptical by nature. Startups should have certain qualities and put a lot of effort into attracting investors if they want to get funded by them.
Investors are looking for startup entrepreneurs who are passionate and believes in the product/service they want to provide. However, while most investors want confident, passionate founders, they are also looking for someone willing to invest their own money. He/she should be ready to demonstrate you believe in your product/services enough to invest your own money. Secondly, new startups must have a “Proof of concept” to show investors that their product is marketable.
The majority of investors are seeking a business opportunity that has the potential to grow. Depending on the nature of your product, you’ll need a market with extensive reach, at least regionally. There isn’t going to be a global market for every product. To attract investors, you’ll need a large enough market where economies of scale can be incorporated into your operations to boost margins and profits.
Finally, innovation is the holy grail for investors, what makes your product/service unique? There has to be something innovative about your product that sets it apart from competitors. successful funding rounds don’t start in the corporate boardroom or with slideshow presentations. They begin with innovative ideas.
