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Entrepreneurs, consider these 7 points before raising funds

The Seven Factors Founders Should Consider When Raising Start-Up Money

1. Passion

The majority of business owners are enthusiastic about their projects. Investors look for proof that the entrepreneur has committed to and made financial sacrifices for the project's success. They consider individuals who have placed their reputation and financial resources at risk, who have persevered in the face of numerous rejections, and who have overcome obstacles along the way.

2. Demonstration

Investors need to see an initial proof of concept that the idea is workable. As opposed to a finished product, this could be a rough MVP.

3. Sizeable market

A beautiful product with little potential for sale won't draw investors' money.

4. Team

It's critical to demonstrate that a team is spreading risk among several members in order to persuade investors that they are complementary and effective at assigning the right tasks.

5. Competitive edge

If you wish to differentiate yourself from the competition, don’t say, “We will work harder.” Explain how your geographic, cultural, and strategic advantages will help you succeed.

6. Plan of Action

Make plans for the future and balance empty assertions of an IPO within three years with more pragmatic approaches to potential strategic partners. Be aware of unit economics and ensure your projections are realistic.

7. Yourself

Investors value intangibles like integrity, personality, and character. Don't try to be someone you're not; just be yourself, and act consistently at all times. The duties of a CEO require a variety of abilities, including asking for feedback and guidance.


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