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3 Realistic Things that Investors Look for in a Startup

Investors from all corners of the globe are coming to meet with startups at Startup Istanbul. Find out more on here about Speed Networking Event.


For investor there are lots of things to think about their investments. The same things are also ruling for you. Here are some realistic things you should think about before facing with investors and VCs.

Management (All Star) Team

If the investors are not impressed with the team, it can be a miracle to get money from them.  For most of the investors, the evaluation criteria are different, you can find some investors who will say  “I like the idea do but the CEO will need to be changed.” But generally they prefer not to invest, if they’re not impressed. Management is so important, because investors give money to you and want to be sure, it’ll be managed and used effectively and efficiently.

Market Size

If you’re talking with VCs or early stage investor, they all want to be sure, one day your company will be huge. Almost all VCs care about investing in big markets and you cannot blame them for that. Make sure your business plan includes some metrics about your market size and provide analytical data to show why it is going to be a huge market. One tip: If you have plans to exit early, do not talk about that during the funding sessions.

Momentum

Momentum is one of the most important things investors will look at. Because it is very easy to lose, especially after a big rush. So, what should you do to show your momentum to investor? Answer: Go and see them early! With this way, if you have a successful company, you can show your momentum later. For example, In your early stages you had 2 developers and the next time if the investor see you with 4 developers and one product manager, or the increase of user numbers, they can see the momentum basically.

─ August 8, 2014