Raising funds is no child’s play. As for attracting Seed Funding from the Venture Capitalists (VCs), a robust pitch deck offered by highly ambitious entrepreneurs might look good. The excellent tones coupled with incredible presentations will go a long way in making good impact upon the investors. Each entrepreneur need to come out with stories that catch everyone’s fancy. However, is that sufficient? The answer is a strict no. A pitch deck might grab attention, however, that will not convince investors to jump into your venture. The pitch deck has to be accompanied by an excellent business plan. It is common knowledge that Venture Capitalists want those firms with solid foundation and an excellent track record. Also, they want companies that has the potential to increase the profits or Return on Investment. Mere lip service will not be sufficient to convince the investors and VCs want assurance that their money won’t sink in this venture. .
Things to factor in while investing in a company
Firms with streamlined operations
it is to be remembered that the angel investors do not want to put their money in a risky venture. So, a company has to prove its credentials. They want companies with attractive portfolios and highly skilled managers who have the ability to enhance the revenue potential of the business.
In case your start-up looks very promising and it is trying to garner a large customer base, then the same can impress the investors and they might take keen interest in your venture. So indulge in an in depth analysis of the market conditions and the kind of traction you can gain among your customers. These things are appreciated by the investors a lot.
Products holding a lot of promise
As we all know that the market is crowded. In such circumstances one needs to have unique ideas and innovative skills to stand apart from the crowd. Further, you need to ensure the products or services offered by you provide viable and cost-effective solutions to the existing problem.
The strength of your team
Investors are highly likely to put their money into a skillful team with qualified members working in a close-knit surrounding. So, it is necessary for the organization to have a dedicated and hard working team that can perform any job efficiently. There is a perception among investors, which is cent percent right, that diligent and educated team members can script success stories constantly.
Venture has to be risk-free
Anyone wanting to invest would be wary of the risk factor involved in the venture. If the venture is fraught with danger then no one would like to part with their hard-earned money. So, any negativity regarding your new venture makes it difficult for you to find Venture Capitalists’ funding.
Display a proper illustration of your capabilities
The commercial viability surrounding your venture can only be established if you and your team members showcase your ideation capacity and problem-solving skills clearly. Hence, an overall planning to make things work and provide the right solution go a long way in convincing investors about your business strength.
No legal issues
Nobody wants to touch a business having legal complications even with a barge pole, least of all investors. Hence, an organization mired in legal issues would be a strict no for investors or VCs. Your credibility is at stake and that is akin to suicide mission for fund investors.
Last but not the least
It does not matter whether you are an upcoming entrepreneur or an established one, putting up a good show is imperative. A pitch deck is a must to break ice with the angel investors, but this alone won’t suffice as your skills and expertise also matter. You have to convince the investors that you have it in you to go the distance. So, consider all these aspects before looking for an investor.
Frequently Asked Questions
Q. Is seed funding relies solely on pitch decks?
Ans. Not really. Seed funding requires a lot more than pitch decks. In fact, commitment on the part of entrepreneurs to take business to greater heights and dedication to convince investors that their money will not go down the drain are also required.
Q. If my company has a legal issue will the investors put in money?
Ans. No way. No investor would love to invest in a company fraught with legal complexities.
Q. Is a team must while initiating a project or a plan?
Ans. It is not mandatory but desirable as people tend to get impressed by a group of people working together for a common goal. A unified outfit comes across as very ideal to the investors.
Q. Can I dabble upon something that nobody has done before?
Ans. Yes, you can. A fresh idea with a vibrant approach can trigger interest among investors. However, the plan has to be convincing and very much in the realm of possibility.