Converting your ideas into a reality is a very ambiguous and expensive process. Being an entrepreneur, you are already aware of this and probably have “find investment” high on priority list. There is also a chance that you will look for venture capital firms.
Those magnificent businesses give credit of their success to shows like Shark Tank and Silicon Valley. They have enabled businesses to reach an almost legendary status among “would-be founders”.
According to CITY.A.M, in the US, a mind-boggling $1,532 in venture capital is financed every second, per year, that adds up to $48.3bn.
As you are probably cognizant, you are not alone. You will constantly fight a steep uphill battle against other completely qualified startups. Some of these startups may have similar ideas but asking for more money.
Now the question arises is, “What Investment Firms Look for in Startups?”
In order to address this issue, I have compiled the list of the best tips to attract investors to your startup product idea.
Present a Solution Overlooked by Competitors
According to Wade Deibner, “Point out where the world is going and get there first.” He is the managing partner of ExCapsa Group, an investment firm behind LeadCrunch B2B solutions.
He further said that the company must make sure their solution is created for a particular problem. They must have the expertise to address it. After all, a solution will only stay in people’s lives if it can solve their existing problem. Otherwise, the competitors are likely to come up with something new.
In this scenario, your product will require additional resources and capital to stand up against competitors. ExCapsa group spectates for the startups that present solutions to the un-discovered markets and repel the enticement to utilize their early lead as a crutch.
Focus on Big Picture, When You Pitch
Edith Yeung suggests that companies must approach their pitches with a big picture valuation via an in-depth understanding of the industry and their products. Edith is a partner at 500 startups that advise applicants to the prominent accelerators. It has helped companies like Studypool and Twilio.
He further added that majority of the founders; he encounters are emotionally attached to their products. However, it is important to notice that investor look for the person who is not only in love with this product but also knows how to create a business. In other words, the presenter must have an appropriate knowledge about policy, legal environment, competitors and market changes.
Richard Werbe is a CEO of Studypool and he is pouring some light on his experience with 500 startups. According to him, in order to impress the investors, you must know your metrics (LTV, growth rates and KPIs). You should not apply if you do not have hockey stick growth and major revenue.
Produce Products that Give a Sight Into The Future.
White Star Capital, a Canadian-based company tenaciously lookout for places that are usually overlooked by other venture capitalists to make sure what the companies will face in the future. Retro is perhaps an inordinate look for private style. Nevertheless, it is hardly gratifying for a business model.
Christian Hernandez is an investor at White Star VC and posted in a recent blog that at White Star Capital, they are openly interested in companies that view data as a competitive advantage. They want to support companies that collate, collect and bring data to life via algorithms.
Reach Out To Venture Capitalists Physically Near You.
If you are in or close to the main city — or even a smaller city – there is probably a venture capital firm that emphasizes on your locality. Let’s take into consideration, Massachusetts-based firm Mass Ventures flues money straight to Massachusetts companies that are functioning to carry tech solutions to state people.
In total, the START program has produced an ecological unit of above 200 exclusive businesses, assessors, advisors and service providers. This was done to create the subsequent cohort of efficacious Massachusetts technology companies, according to Jerry Bird, who is president of MassVentures. MassVentures is satisfied to analyze the agenda’s accomplishment. They are pleased to continue the provision from the State to upkeep ingenuities such as these that assist in driving economic growth.
Have a balanced founder team.
Paul Graham is a co-founder of Y Combinator. According to him, “the most significant question for determining [how good the originator group is] is: ‘please tell us in one or two sentences about something impressive that each founder has constructed or attained.’
For them, this is the most imperative query in the presentation. It is purposely flexible; there is no sort of reaction they are looking for.
It could be that you performed well in school, or that you transcribed a highly-regarded piece of software, or that you financed your transport after leaving home at 16. It is not the sort of accomplishment that substances so much as the greatness.
Being successful in a startup is astonishing, so they are looking for people able to do extraordinary things, in the most verbatim sense.
Conclusion
After viewing the discussion above, it can be said that currently, you have certain thoughts on where to instigate your search for startup funding. It is time to put these resources together to optimize benefit. Although many of these are great tips when looking for the initial capital required to setup a business, many businesspersons find themselves recurring to these conduits when chasing their career goals, increasing their operations and maintaining effectiveness.
You always make your startup perfect in anticipations of enticing venture capital investment. You must also think of each of these characters also assists you in developing a successful company as well. Be honest and do your investigation and nothing can stop you!
