Before investment, investors decisions involves on analyse the risk and rewards using as much objective data as possible. investors are the blood bank for startups and companies. Investors has to take crucial decision for the investment and analyse the risk factor.
Top#1. background and experience of your Team’s
firstly investor will notice the marketability and profitability of your idea. Your background and experience of your team will be noticed and investors stake on business which having consistence of position in market and also having stability. They most likely to invest after considering your experience and business plan.
Top#2. What you have at venture
Every investor wait to for return on investment. Investors are most likely to check whether your business is tied up with their company or not. Investors wants the commitment to put their hard earned money in your venture. They want to see your effective output of business in the form of time and money.
Top#3. Capability of profit making
Every investor wants to invest money on business only because to enjoy the profit. By checking background and study your business plan, the investor will analyse the capability of product. They analyse the product according to market situation and think that did your business idea work or it have a capability of profit making. They are not expecting you from positive cashflow statements from starting, but if your business model have the capability to generate profits in the long run and increase the customer rate by this parameters they would be like to invest on your business.
Top#4. Scalability/ market size
investors wants your product to capture large market. At starting stage investors do not expect you to have a PAN India presence, but your business idea must have the capability to expand your business. A global market is always preferred which can increase leverage the economic scale. easy scalable idea have possibility to invest money.
Top#5. Proper Exit Strategy
investors are always invest money when your product have the capability to stable in product. if anything gonna wrong and your not able to get return on capital then investor and initial employees will have exit strategy. Not only investors but also your initial employee want return on capital. Investors also want to know the proper exit strategy if business not able to run.
Every investor wants their return on investment in short time period thats why most of investors invest money in multiple companies to reduce the risk factor.
Need Any help??
Our Firm helps startup companies by guiding to raise funds from investors and points be noted for investment. If you required more information or any professional advice
freely you can contact us:
Phone: +91 958-740-6557 (India)
email address: CuteVamp911@gmail.com