What investor looks for?

entrepreneurs
startups
startupindia
investors
funding

#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.


#2

Investor look for business that meets following criteria

  1. Problem Solution Fitment (Large size of opportunity) - Appealing on paper.
  2. Product Marketing fitment (Service and Products which fulfills pain and needs not want and desires) - Appealing in market.
  3. Business model fitment (High margin per transaction) - Appealing in Bank account.

They also look for Team that is excellent mix of Entrepreneurs
1] Thinkers and Doers.
2] Sales experts and Product Developers (not coders)
3] Copy writers (persuasion in print) and Industry experts advisers

If any of you desire to raise investment for your business, reach out to me to get your business idea or existing business assessed if it qualifies for investment. Raising fund is not success.
Raising investment is submitting yourself to partial slavery. Business not being funded by external investor is USP and stands out in competition.