8 Things That Every Investor Looks For In a Startup
Ever wondered what separates those businesses that secure backing from Angel Investors and Venture Capitalists, and those that are stuck, struggling, and used to rejection?
Those businesses that successfully secure backing, know what every investor expects of them before they even begin to deliver their pitch.
Who needs to sit around guessing what the people with checkbooks are thinking? You don't! Head on over to the blog and let's dig in!
Click to discover the eight things that every investor looks for in a startup business.
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DOES YOUR BUSINESS HAVE WHAT IT TAKES TO DELIVER?
As an investor, when I see a company come before me I'm looking at the leadership. The founder, the people who are in the C-Suite they make a big difference in the success of a company. It's not unlike betting on a political candidate. I'm betting on your vision. I'm betting on your plan. I'm betting that you're the person to get the job done and that what you know about your company will last through many years. We're going to have a relationship together and just like when I go into the polling booth and I decide I'm going to elect someone to represent me, you're representing my money. You're representing my interests as an investor.
You have to have very specific qualities that I'm looking for for me to back you. When I hear you pitch, I'm listening to you the same way that I listen to a political candidate promise me what they're gonna do over the next four to eight years. Your pitch has really specific elements and that's your plan. That's the road map that I'm paying attention to to see if I can really get behind what you're selling to me and your customers. I'm Kelly Keenan Trumpbour, Angel investor and venture capitalist. In this video I'll talk to you about the eight things I look for in a startup business.
The first thing I'm looking for is confidence and stamina. This is how well you execute. If you don't believe you can get the job done, why should I think you can get it done? Market awareness is crucial. I look to see if you understand the arena you're about to jump into. Who are your customers? What do they think about? How do they act as a large group and not just as individual customer avatars? You really need to know what's out there and how the market behaves. Once you've defined your market, I need to see that you can define the opportunity that exists in the market.
If there isn't one, you don't really have a reason to exist as a business. Your product, your service, whatever it is that your business does, it has to deliver on that opportunity. It has to solve people's problems, make them happier, do something that affects a big market not just one person but a giant chunk of who's out there as potential buyers. I also need to see that you have a go to market plan. How are you gonna take your idea out of your head and put it into the marketplace? If you want to pitch to investors like me you have to talk about scalability. You have to be able to talk numbers.
Where's your profit? What are your margins? How does this work on a bigger scale and not just one on one with one customer? You must have a very focused and clear ask when you come before investors. How much money are you looking for? What do I get in return for the investment I'm about to make? How long is our relationship likely to last? Things like this are very important. Talk to me about your exit strategy. I need to know when do I get my money back. I'm not looking to become your partner. You're not a charity and I'm not your aunt. I'm not just giving away money.
Our relationship works best when you can define for me when you think I'll get my money back. You don't have to know for certain but most start ups, they plan to get their money back to the investors between five to ten years. I need to see you convey that you have a plan, that you have a profitable business idea, that you're the person I should bet on because you're the one who's gonna execute that idea, take my money, and give me a good return on investment. These crucial things are what really make the difference between a start up that stands out and one that washes out.
Curious what I'd think of your big idea? Head over to SeeJaneInvest.com/InvestmentPotential or click the link and take a quiz to find out. Want to know what I'm looking for when a business approaches me for investment? My signature program, Seal the Deal, is a step by step blueprint for creating a winning pitch deck taught by me, Kelly Keenan Trumpbour, Angel investor and venture capitalist. Seal the Deal opens for enrollment soon. Get on the waitlist here at SealTheDeal.com/waitlist.
Until next week,
Miss last week’s post? Check it out here: Should I Cash Out My 401K to Fund My Business?