What an Investor Values ​​positively in a Start-up

Have you set up your own start-up? Are you already getting the first users and customers? Likewise, now is a good time to seek external financing to help you grow and hire people to help you along the way.

How an Investor Values ​​a Start-up Fotolia Photo Rights

Now the complicated thing is to put a Zambia B2B List price on your project. If you are looking for, for example, 100,000 euros, an investor will ask you for a percentage in return. The million dollar question is how much you have to give. For this, it is necessary to understand what an investor values ​​in a start-up.

1. Path of the founders : the most important thing is the people. If you have shown in the past that you have been able to set up a successful project, it will be easier to find financing. Otherwise you have to convince with your personality and the desire to carry out this adventure.

2. Registered users : do not go to see an investor with empty hands. Having an idea is all very well but it shows that you have already taken the first steps and that you are even succeeding even if it is still on a small scale.

3. Existing billing : an investor is not so different as an entrepreneur (although in some respects yes). He wants to be able to dream about your project and think that one day it can be sold for a lot of money so his investment is justified. If you are already earning money, you have good proof that there are people who are willing to pay for what you offer.

4. Pace of Growth – Investors Love Curves

Zambia Business Email List
Zambia Business Email List

If you start showing them hockey sticks as your project grows you will quickly see the twinkle in their eyes. Few start-ups go from a linear growth to an exponential one so it is not really something that they expect although they would like to have it or think that your income curve, page views, users start to have that shape just before they enter.

5. Market and Model Risk – An investor knows that the more risk they take, the more they can earn. In Europe it is positively valued that there are companies in the United States that are already doing what you do to show that there is a gap for the idea. Especially in Latin America the so called Copycats are having a lot of success .

6. Project scalability : your company’s income cannot depend on the number of sales people you have to hire. A start-up is scalable when there is no direct relationship between what you spend and what you sell. Even if it starts at a national level, there must be possibilities to internationalize the business once things start to go well.

The factors mentioned here are not a complete list because in the end each investor is different. What one likes may not suit another. Remember that the most important thing by far is you in this project. Sell ​​yourself in the best possible way because even if other points are still improvable, your personality and passion can make up for it.

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