Angel investors and venture capitalists look for potential of development and profitability when they choose the startups which deserve their investments. Here you can find some useful tips and key points to follow in order to secure your startup funding, to win the trust of the investors and receive the funding that your startup really deserves.
Know your value. You are highly motivated entrepreneur with clear vision and strong ideas. To present yourself in a memorable manner in front of the investors you need to unveil not just your personal qualities but also to rely on numbers, statistics, plans and strong business vision. Investors invest in order to gain profit and if you don’t know what the value of your business is, you are most likely to be rejected and forgotten.
Execution is everything. Prepare yourself to clearly present the execution path of your idea. Be ready to explain every single stage of the process. No idea is turning into successful, profitable business if it cannot be executed in the right way.
Create your perfect business plan. It is hard work and requires a lot of time, but this is your winning ticket. Without great business plan and perfect execution presentations you are most likely to lose the attention of the investors. When we talk about money, predictions are not enough. Winning funding is serious business and you have to approach it with professionalism no matter what your niche is and in which stage your startup is.
Team work. Investors invest in teams, in people that they believe in. You, as a leader, must prove that the people you work with are the right ones, that they can be trusted, that they can deliver and that they can give all it takes to turn your startup into profitable business.
Know your audience. Different investors have distinct investment style and are in search for various things. Before you prepare your startup presentation, you must know who you are presenting for. Do some research on their previous investment and be prepared to deliver something that they will want to see.
Listen. Conversation is not simple exchange of verbalized words. It is more like a process of listening than of talking. You must know what you are saying and in order to do so you must be able to decide what exactly you were supposed to say. Often the answer is within the question and investors like people who perfectly understand their needs and concerns. Read between the lines, listen more and concentrate on the quantity and the quality of your speech.
Deliver. Winning funding is not the hardest part of your startup venture. The most important part starts after the funding, after you have the ability to work in full force. This is the moment things get real and you have to be prepared for it. Nobody wants to win bad reputation by showing inability to fulfil the promised and to leave the work unfinished. The key to winning funding is the potential to use the investment properly.