It is a known fact that
entrepreneurs bootstrap when starting out because of limited finance. This is
one of the main reasons why less than 50% of them survive the first five years
in the market. To take your startup to the next level, entrepreneurs are regularly
searching for venture capitalist and investors to invest in their businesses.
Of course, startup investors desire innovative companies to invest their
monies. However, they won't drop a dime if they do not see the following things:
Strong leadership teams
To secure startup investor funding, show that you have smart,
strategic, and successful leaders. You must show the competency of both your
company founders and leadership team. So, endeavour to leverage your leadership
team's professional experience for increased investor interest in your startup.
Clear ROI
Return on investment (ROI) is the time needed to recoup the
initial expenses invested in a business. Most startups aim to achieve this
within the first one year of operations, but in certain sectors, it takes
considerably longer due to high entry costs and low-profit margins. Would-be
investors are aware that quite a number of startups that receive venture
funding are unable to immediately make returns. As such, they want to see some
real evidence that within a particular period, they will begin to get these
returns.
Consumer interest in your product
Investors want to know that your product has a future in the
marketplace. So, the onus is on you to show them proof that it has a market
niche of its own and consumers are interested in your product.
Transparency
Transparency is important to increase investor trust in your
business. No startup investor wants to enter a deal when they do not feel like
they have all the facts. Be open and honest about the state of your business,
the challenges you are facing and how you plan to surmount them.
Growth potentials
Investors do not want a company that will be stagnant. They want
to invest in startups that will thrive and eventually provide a return on their
investment. Therefore, your business should be built with scalability and
growth in mind.
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