In the previous post, I discussed the challenges faced by startup owners seeking funding. But what about the business idea itself? Are there specific characteristics that investors consider indicative of a potentially successful startup?
Of course, there are many! Let's discuss the key ones.
1. Alignment with Global Business Theories
Analytical tools that can help determine the potential profitability of your startup are often found in global business theories. Do your homework, familiarize yourself at least with the basics, and run your project through these theoretical "filters."
· Short Lean Canvas - fundamental project forecasting,
· Design Thinking,
· 10 Types of Innovation by Larry Keeley.
2. Scalability Potential
Investors are interested in projects that can scale. The higher the chances of taking your business to Eastern, Western Europe, or the USA, the more enticing your startup becomes.
3. Focus on Trends and Innovation
A startup is always about innovation. If your business idea lacks innovation, such as developments with patents and unique technologies, it's unlikely to capture an investor's interest.
4. Economic and Marketing Metrics
Investors' perception of your product depends on what exactly you offer. Is it a single product? A marketplace? An ecosystem? A platform? This directly determines its profit potential. Investors follow the money. UNIT Economics, LTV, CAC – all metrics must be considered.
5. Understanding the Stage and Needs of the Project
At what stage is your project? Pre-seed, Seed, Series A, Series B? Understand clearly where you stand and select an investor profile according to your project's problems/needs. Whether it's a studio or an accelerator, whether you need funding at an early stage or your product is ready for testing and hypothesis verification.
Two key aspects in the fundraising process – Road Map and Valuation as a part of the Road Map – play a crucial role in attracting investors