What Investors Look for Before Investing in Your Startup?

  • Setindiabiz Team
  • May 5, 2023
What Investors Look for Before Investing in Your Startup?
You have come up with a brilliant idea ready for business! This idea is all set to become a business. Now that you are ready to tread on to the path of progress the next big question is where to find funding for your business? Who & why will anyone give you their money to start and run a business? Won’t they do it themselves? Read this blog & get answers to these & more questions.

Let’s Discuss What Funding a Business is ?

Funding for your Business actually refers to the act of providing financial resources to an individual or group of individuals who are willing to give physical form to their idea. AKA Want to start a business. The aim behind funding is to finance a project. You might say that funders are like guardian angels to the start ups as they take the initiative to finance a part or all of a project’s cost as an investment, grant or loan.

Who’s a Funder?

A funder can be individual as well as an organisation comprising a group of funders. Along with a great business idea it is necessary to prepare a presentation that has the same pitch of greatness as the idea. The presentation needs to be full of confidence, zeal, passion, commitment, capability to convince and scalability of the business at the time of presentation to the proposed funder. The funder might keep a hawk’s eye on all the intricacies of the presentation & the behaviour also. As the founder needs to be completely sure that there are least chances of failure when it comes to investing. Thus, when looking for funding, remember the most essential is your unique selling proposition (USP).

A Short Guide to Help You Understand What Investors Look For

In order to ensure that investors are convinced that your business will grow, it is advisable to know what funders look for. All funding organisations or individuals look for your track record and the impact that your proposed project will make on the community.

This short guide below will provide you with an insight into what funders look for:

Clarity of Aim: Being an individual looking for funding, clearly briefing your aims to the proposed funder makes the potential funder realise that you are a person with clear vision and goals. A person with clear motives goes in the right direction without any distraction. Thus, this is the first and the most impressive thing that any funder looks for.
A Realistic or Pragmatic Budget: Another most significant thing that funders look for is an individual who takes a pragmatic approach and sets a realistic budget. It helps both the funder and the individual looking for funding as they have a clear and defined budget unlike the expenses that arise all of a sudden during the project.
Acknowledgement of Potential Risks: Yes, nothing is more attractive than an individual who is ready with all the intricate details and is highly presentable. Thus, funders also tend to look for an individual who knows the potential risks and problems that can arise in the near future and is also prepared for them with all the solutions to those problems.
Last but not the least, attention to detail and a good relationship with funders are always the pros for the person looking for funding for their organisation. Moreover, it’s also suggestive to go for a detailed knowledge about the funder and carry a confident smile on the face.

We hope that this blog has been helpful for you to understand what funders look for investing in a startup. If you still have any questions, you can avail our free consultancy services where our experts will guide you to resolve all your doubts and queries.

Conclusion

How Can SetindiaBiz Help You?

Setindiabiz is an organised team of experienced CA, CS, & Lawyers, duly supported by a pool of trained accountants & paralegal staff that provides quality & affordable compliance services to startups & small businesses in India. We specialise in company registration, with more than 18 years of experience in the field. To avail our services, you can request a callback from our startup advisors, or directly subscribe to our package of company registration.

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