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What our members have to say...
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"What a ride it has been - we had just launched and were looking for 6 figures for our marketing budget. We met with quite a few investors that we just didn't click with, and then one that understood our business perfectly. Within a week it was all signed, and our marketing kicks off in a few days. We went to two VC houses over and above Investment Network, and they weren't able to find the funding we wanted, so this is just another thumbs up for this amazing network."
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Riccardo S - Dealio |
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What Investors are Looking for....
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Every Entrepreneur wants to know, "What are investors looking for?" This is a common question we get. Even if you’re not currently looking for Venture Capital or Angel Funding you should establish your business in a way that your prepared at any point to sell, merger, or acquire needed funding. We all can agree that every investor is looking for a great return on their investment however, it's more than just about the numbers. Here's what savvy investors look for today before investing in a business.
1. Management. Experienced management must have a sound track record, or the clear understanding that the founding team accepts a transitory role. Management must demonstrate the ability to lead the organization, execute the business plan rapidly, manage cash effectively, attract additional financial and human capital, and adjust course when necessary. Founders of an early stage enterprise must be willing to accept hands-on involvement and support from the investors and the recruitment of more seasoned professional management if and when appropriate.
2. Business Plan. The business plan must effectively address all key aspects of the business, including management, technology, customer acquisition, and competitive challenges. Financial forecasts must be realistic with appropriate support for all key assumptions.
3. Compatible Co-Investors. Management, current shareholders, and potential co-investors must have experience in businesses of this type and stage. There must be compatibility among these parties and the shared commitment to work together to make the company a success.
4. Compelling Product, Technology, Service or Market Position. There must be a fundamentally exciting or disruptive technology, a unique service or approach to an attractive market, or other distinguishing characteristics, have you defined your market and/or secured your niche?
5. Sustainable Differentiation. There must be a credible source of competitive advantage in the form of strong and defendable patents, proprietary processes, first-mover position, key customers under contract, or world-class technical talent.
6. Market Size and Growth Trajectory. The available market must be large and/or growing rapidly, typically in excess of several hundred million dollars or credibly expected to reach that size during the investment term.
7. Investment Structure and Terms. The investment structure and terms must afford sufficient protection, influence and potential upside to justify the commitment of capital and time, and facilitate future capital-raising.
8. Exit Strategy. Management, current shareholders, and board must have realistic valuation expectations and compatible views on potential exit strategy.
Always align your business with the end result in mind and you will easily be attractive to any investor.
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