6 things startups should do to attract global investors
TRANSCRIPT
6 Things Startups Should Do To Appeal To Global Investors
Introduction
Key points that Startups should be focused on to attract global investors
Business Model Scalability Competitor Landscape Compliance Valuation & Structure Perfect
Management Team
Introduction Global investors are continuously looking for best growth corridors
They will invest where opportunity exists
It is not necessary that a startup has to be focused on global market
Startups should be very clear on market segments they will own
Lets take a look at key points that Startups should be focused on to attract global investors
Business Model
Be crystal clear on the business model & how it will prove successful
Unit economics should make sense before attracting any investment
Business model should be tested & initial traction proven profitably
Model should be applicable in different markets & have a global outlook
Unique positioning should be determined
Investors look to fund unique projects that are not easily replicated
Global Investors are motivated by the next big thing like anyone else
Scalability
Your venture & the underlying service offering have to be scalable As a venture grows various aspects of the business change Sufficient people should be interested to scale the business A really cool, unique idea, may not be fundable if it is not scalable Be aware of market size & market segment as investors need to believe a
market opportunity exists & revenues can be generated Impacts of growth should be clearly thought through & step changes should be
well defined
Competitor Landscape
Be aware of who the competitors are Competitors may be using different business models but approaching the
same opportunity
Cost of competition & how to defend your venture should be determined Be very clear what your plans are for different scenarios & have some
scenario planning
Compliance
Compliance is important for global investors while it may not be emphasized as much by local investors
Startups must be very vigilant with compliance on various fronts like taxation & structure of the company board & company secretary compliances banking & FDI compliances various employment & benefits compliances
No investor likes surprises soon after they invested Non compliance may lead to injunctions & other legal matters
Valuation & Structure
You must become familiar with various structures of debt & equity It is important to understand differences & what associated terms
mean
Different valuations may be attached to different structures You need to be clear on how much you are willing to dilute & what
amount are you trying to raise
Break even position & time horizon should be indomitable
Perfect Management Team
The right team is the most important factor in attracting venture capital funding
Investors are highly likely not to invest if they are not impressed with your management team
Early stage investing has high degrees of uncertainty venture capitalists require a high level of conviction that the team has necessary skills, domain expertise & diversity
Your team should have complementary skills with a track record of collaborating well
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