02 Apr 2019
Are you thinking about going for investment? Wondering how to go about it, what do you need to focus on? Our investment team shares some top tips.
Creating a successful startup will be harder than you think.
In the beginning
Before you begin to try to convince an investor, make sure you’ve gathered enough objective data and market feedback to convince yourself, as well as others.
Focus on building a great team. The idea is the easy bit, team execution is everything. Show your potential investors what you’ve achieved to date with the limited resources available to you.
Talk to as many people who can help you and test your idea as much as possible. It’s not what you think that’s important, it’s what the customer thinks. Also, try and find mentors who can add real value to what you are doing.
Talk to investors early on at the idea stage – there might be a reason why an investor wouldn’t invest in a particular business or stage of business.
Be ambitious but focused. Whilst forecasts are important and demonstrate your view on scalability, show how you will get the first couple of customers – try to get potential customers using your product, even for free. Don’t say that you have no competitors – work out what the next best alternative is to whatever you’re offering. work out how you’re going to achieve getting whatever percentage of the market you’re aiming for – specify the how, not just the how much.
Get the investment figure you’re looking for right and realistic. Focus on how much you need to deliver your objectives over next 12-18 months - make sure you aim for a figure of investment that you are confident of achieving.
When you are selling your business idea to an investor make sure they are selling themselves to you. They should be showing you what they can bring – it will be a partnership. You need to want to work with them.