what investors look for
TRANSCRIPT
What Do We Look For?
BUSINESSPLAN
CORETEAM
BOARDSECURED
IPCASHFLOW
STRONGRETURNS
CONTROLRATCHETS TO INCENTIVISE
GROWTHMARKET
QUALITY INVESTORS
SCALABILITYUSPMONETIZATION
MODELPROPRIETARYDISTRIBUTION
BOARDROLE
•Lets make it easier for you
Ideas are commodities• Its all about execution
–Team–Strategy–100 day plan
• Don’t be stuck on an idea –Have you thought through the rest of the idea–Means you will want to be 1st to market!!
Customers are kingClear targeted products/services that solve real pain
Real validation of your market is vital
Find your competition Not just companies
Consumer behaviour
InertiaHabit Other products
Team Team Team
Investors do not fund business plans or great ideas
Ability to execute
Sector experience
“I need £1m to start with ”
• Sure way to dilution – now and in the future
• Start with smaller amounts and use the cash to further validate your proposition
• Increases your valuation each time by setting clear inflection points
Investors are not risk takers
• The higher the risk – the higher the % you will have to give away
• Your job is to prove you have mitigated the risk
Other things we don’t want to hear
• I have a killer product – the customer will come
• We will reach our customer by viral marketing
• I will use partners to sell my product
Knowing when yes means no
• VC’s will put you off rather than saying they don’t want to invest
Adhere to the fundamentals
• Validate the market
• Assemble a great team
• Develop a profitable business model
• Execute as perfectly as possible
Keep it simple – tell them what they want to know and
no more!– What’s the Opportunity – Team – Product/Market– Traction– How much money – Exit