Can anyone please help me understand what #investors are looking in a #stratup or an #entrepreneur so that they will decide to invest on them? Thank you.
What in an entreprenuer good n excellent in should invest.
So that he/ she can dedicately work on his / her own venture.
Then comes investors ,
they will just count on your knowledge, confidence,dedication and stratagy for business.
Everyone is stating the obvious here, which if you did not know you have a lot of research to do. What no one has stated to date is that your business plan is one of the most important ways they evaluate whether or not they will make money. It is your team and management..your vision, your plan for operations...marketing...your financial plan...your exit strategy...your financial footnotes accounting how you will spend their money. Easy answer to your question is the no brainer...most are going to want to see financial gain, unless you are a very rare type of non profit. But the part that takes time, is the though in how you convey to investors that you believe you will in fact build a profitable business.
In my experience, they are looking into the balance between the monetization of the idea, the ROI and the grit of the entrepreneur to make it happen.
If your investors are your friends and family, they're looking for dedication and effort and a reasonable plan. If your investors are strangers, they're looking for how they're going to reduce or eliminate risks and return their money quickly and in multiples if possible. It's frankly that simple.
If you're looking for a detailed explanation of each of the ~8 types out outside funding and what's a good match for your scenario, you might check out "The Art of Startup Fundraising" book as a primer on the subject. It was written by the CEO of CoFoundersLab.
The harsh truth from an Investors' perspective is - 'Will I get my principal amount safe?', How much xx can I make in return of my investment?
This is the bottom line - No one is in the market to do charity and they all look for returns. Digest it and move on..
In my experience and in summary:
1) Your business plan
2) Does the product/service have a market and for how long?
3) How much of your own money have you invested? They want to know you are highly invested in your own business
4) Current sales and an overall positive trend
5) Is your product/service patented? This eliminates competitors for the most part.
6) Can you stay ahead of the competition?
7) Are you and your team qualified to operate the business?
In the end investors want to know if at the minimum, are they going to make their money back and then some.