What investor looks for?

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startups
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#1

#1 Market Details

A- Market Potential

B- Market Size

C- Total Achievable Market

D- Competition wrt Market share

E- Rational reasoning for all the above numbers.

#2 Team

A- Core Team (Founding Members + Other people who hold senior positions)

B- Team’s experience, expertise, and domain

C- How the team shares a bond with each other.

D- How the team reacts to various situation.

E- How the team takes the decisions.

F- Team’s interpersonal and professional skills.

#3 Traction

Traction has a different meaning for different people, the things which you can quantify and qualify to prove your startup worth can be called as a traction measure.

A- Number of paying customer

B- Total Sales / Revenue

C- Number of app downloads (Real)

D- Non Paying but the potential to pay customers

E- Any IP, awards or recognition (Real)

F- Sales Pipeline (Potential)

G- Developed Business Potential

H- LOI, Orders Booked or agreements

#4 Startup Stage

Every investor has their own investment thesis to choose a startup at a particular stage.

You need to understand your startup stage.

A- Ideation Stage

B- Seed / Prototype Stage

C- Pre or Early Revenue Stage

D- Revenue Stage

E- Growth Stage

F- Scalability Stage

#5 Investment Risk and feasibility.

A- Is the business really scalable?

B- How easy or difficult could be scalability?

C- Unit Economics to understand future profitability and economies of scale.

D- Investment Ask and offered equity.

E- How easy or difficult exit will be?

F- What would be an exit timeline.

G- Probable & realistic exit strategies.

About the Author –

Mr. Yogesh Thite – Founder & CEO – Meticulous Business Solutions Private Limited.

A young, energetic and result oriented person. Yogesh helps people, start-ups & business houses to start, expand, grow and sustain the business. He works in the space of startup and business consulting.