How Entrepreneurs can
attract VC investments
After exhausting the
money that you started with, you as a founder will have to raise funds from
investors. However, not all start-ups make it to the last round of funding.
Many potential companies have flunked even after receiving Series B and Series
C funding, and some even after raising over $100M. A few start-ups, on the
other hand, are unable to even reach this series of funding. So, what is it
that can make your start-up more lucrative? What is it that can be done to
attract VC?
The first and foremost
thing that any VC would look for is the business model. They would like to
understand the product that your company has created to make sure you have a
foolproof prototype ready. A novel product also helps you impress investors.
However, if you have a product that is similar to the one that already exists;
then you will have to demonstrate how you are different. Make sure that you
believe in your product and are able to convince the VCs why your product is
better than the ones that already exist.
Investors also love to
see products that cater to a large market. Having a huge addressable market
surely gets the ball in your court to impress the VCs. Another important aspect
that investors love to see is scalability. Higher the scalability, higher the
revenues and higher the chances of funding! Moreover if your product is
scalable, then you can also expand to other countries easily. This is typically
the reason that tech based companies are always preferred by VCs. Technology is
easily scalable, and tech based products or services can be sold easily online.
Another silent factor that
plays a big role in VC’s decision is the ability of the founders to execute. How
competent are the founders in running the business? What is their pedigree and
past experience? Have they graduated from leading schools and Ivy League
colleges? If yes, then half the battle is won. If not, then also it is
absolutely no problem. If the founder has some experience in running a similar
business in the past then it is preferred by the investors. However, there have
been many instances where the founders have started totally unrelated business
from scratch and still got funded. To be able to carry out your business you
should be ambitious and driven to make it a success. If you, as a founder are
able to do that then you are good to go!
In order to raise
funds from investors, it is important to identify who can be your target
investor and how to contact them. You can do it on your own or take help of the
Investment bankers. However, they investment bankers charge heavy fees.
Therefore, startups should consider affordable fundraising
service. Most of the
startups prefer ALTIN Global, a tech-enabled platform that helps founders find
the right investors and connect with them. They match startups with more than 40,000+
investors across the world based on a number of criteria and connect only with
the matching investors.
ALTIN also helps
start-ups make professional pitch decks along with other strategic consulting services, such as market entry research,
product fit, and partnerships. If you wish to know about how it works, then
please refer to https://altinglobal.com/
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