By: BEING ON THE SOUTHFOUND PODCAST
This content was originally recorded for the SouthFound podcast, where I feature entrepreneurs and startups from the Southern United States.
What do investors look for in a startup?
When you are looking for investors to inject capital into your company it is important to be targeted with who you approach. Approaching investors that have no interest in your space or that haven't invested before at the level you need is a waste of your time. Think of this like the common Marketing topic of "target market".
Here are 9 things investors look for in a startup?
Team
My good friend and CEO of Angel Capital Group, Eric Dobson, often tells entrepreneurs that between 50-70% of an investors decision to put capital into a business is based on the team operating that company. The thought process is that the idea can be a grand slam solution, but if the team can't execute the plan you will never gain enough traction.
Having a solid team doesn't mean you must have a fully developed organizational structure already in place. It is important for most startups to have both technical and business-minded co-founders (rarely are they the same person). There are some functions that you can outsource, especially early on. Things like bookkeeping, graphic design and legal work.
Some entrepreneurs cover their bases on skills their team is missing by having an advisory Board. Here they invite other entrepreneurs and professionals willing to provide their time (sometimes for free or in exchange for small amounts of equity) to guide the company through issues within their experience.
However you choose to structure things, just be sure that you have a strong team in place.
Read More >> http://jonathanmillspatrick.com/what-do-investors-look-for-in-a-startup/
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