What Makes a Start-up Appealing to Investors?

What Makes a Start-up Appealing to Investors; Investors look out for peculiar indications to find a startup or idea feasible to invest in. For a startup to be able to get funding from investors, some of the areas that should be taken into consideration, business ideas, products, traction, business plan or execution structure, team.

How to Identify Feasible Startups

1. Ideas; are key to setting the company’s vision and creating a compelling story. While many companies pivot as they develop their product, moving away from the company’s founding ideas. It is important to create a unified vision and is a good way to let everyone focus on a central mission.
2. Traction; one major thing an investor looks out for is; the startup to be able to prove how marketable a product is, typically the ability to sell a product or service and the measure of the customers to the use of the product. This is to help determine and identify if the startup is scalable.
3. Team; one of the most important parts of a startup is the Team, thus makes up the greater component of the success of the scaling up of the startups. Investors pay attention to the expertise of the team members to know how their skills can be leveraged to help the business grow. The attitude of the team members also goes a long way to determine how fast the business will grow.
4. Execution; You have developed an idea, turned it into a product or service, and now it is time to execute. How do you begin implementing your ideas and sell your product/service? What channels will you utilize? It also means setting clear, measurable goals so that progress and employee performance can be evaluated.
5. Product differentiation and competitive advantage; this allows the investor to identify the difference between your product and other offerings in the market. It is also to identify the innovative side of the product or service.

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