Tips from the Investors on what they are Looking for in Funding your company

j-en-aTwo experts shared their expertise with a number of start-ups at our last event.  With a view to funding for entrepreneurs drying up, these are the tips they had on what investors are looking for in a start-up:

Angel investor Anna Sofat of Addidi Angels said her investors were looking for:

  • A good idea
  • Whether there is a market for your product and whether it has a unique selling point
  • Whether there is  robust business plan. This does not mean that all figures match, because as she warned 'you can always make the figures add up', it also means that you can prove that those figures are based on actual results.
  • Personal involvement of the founders with the company
  • High financial returns (of more than 8 %).  With start-ups come great risks and these need to be compensated for in returns that are higher than you can obtain through other investment funds or bank loans.
  • Tangibility. Anna explained that she often likes to invest in companies that offer tangible products rather than intangible services or so.
  • A good management team with the skills and leadership capabilities to make the company a success and the guts to

Venture capitalist Judy Gibbons of Accel explained what her company is looking to invest in:

  • A high growth company; ie an indication that there is a market for the product that has not been tapped into
  • A clear plan for disruption of the segment you operate in, how you will change the market as it is now
  • Evidence that the business plan works
  • An agile team who can change their business strategy quickly and effectively if needed
  • A plan for survival in times of economic harship. Judy explained that businesses that survive a recession will come out on top and often start dominating the market they are operating in. This is the kind of compnay she is looking for.

[...] [...]