How to attract investment in a Startup

If you're an ambitious entrepreneur or a passionate startup founder, you probably know that securing funding is crucial for turning your vision into a reality. However, with the fierce competition out there, attracting investors can be quite a challenge. Fear not!?

In this article, I will share key strategies from investors and a startup funder that will help your startup stand out and attract the attention of potential investors. So, let's dive in!

Read how and why invests in startups G?ran Carlson

Business Angel from northern Sweden with over 25 years of experience in investments around the world, has established northern Sweden's first listed venture capital company - Northern CapSek Ventures , which has offices in Pite? and Gothenburg. Current portfolio companies are based in Sweden, Hong Kong, Spain, Czech Republic, and USA.

The main focus is to invest in innovative small and medium-sized technology companies, with an extra focus to invest in the space and mining industry at the moment.

Which startups are you primarily interested in?

Tech companies that solve clear problems or satisfy clear needs where the market's willingness to pay has also been carefully validated. It can be both products and services, but only B2B.

What value do you add beyond capital?

I work actively with leading the companies in lean startup methodology, which includes building teams, creating smart financing solutions, growth strategy, development strategy, opening doors to partners and customers and coaching the entrepreneurs.

What stage of startups do you usually invest in?

All different stages. In really early stages, I can also invest time against shares, because then you often have to put even more work into helping the entrepreneurs.

How involved do you prefer to be in the companies you invest in?

I am always involved on a strategic level as an advisor to founders, possibly the board and management.

What is your average investment size and typical transaction structure?

50,000 to 100,000 Euro, preferably in convertible loans.

Are you open to new investments in projects?

I am always looking for new great teams to invest in.

What advice do you have for startups that want to attract investment?

My final advice is to take help from incubators or other mentors who already have done this journey many times before.

Will share very valuable information with you Bas Godska ???? Founding Partner Acrobator Ventures | Acrobator.vc , Co-Founder Netherlands for Ukraine

Can you provide examples of successful investments you've made and how you helped those startups succeed?

Some noteworthy angel investments are miro.com , harver.com and chocofamily.kz . I enjoyed helping the founders with both growth strategy and hands-on marketing tactics.

How do you evaluate startups and make investment decisions?

Among several factors, we need to have a good click with the founder(s). I need to understand the problem they’re aiming to solve and feel confident about their execution strategy. It should be an ESG-compliant, “good-karma” business that fits our fund’s thesis. As an angel I used to pick fairly intuitively, as a vc fund manager with larger tickets I look at a lot of elements, for example we have an ~80 point validation matrix we fill in that helps to assess in detail how a company scores.

What milestones or metrics do you typically look for in startups before investing?

Typically traction, growth rates (MoM/YoY), cac/ltv ratio, low churn, good retention, reasonable valuation, investor appetite… but sometimes not all of these data points are available. Cool founder team, previous experience and big market size are very important.

What is your timeline for making investment decisions?

We get ~3000 decks per year do it’s hard work to go through most of them; after issuing a term sheet we normally need to complete a due diligence during 1-3 months, then the founder gets the money in the bank.

What criteria do you use to assess key risks and challenges for a startup?

In random order, some points: Competition - is the market not a Red Ocean; is the founding team a great fit together; how solid is the go-to-market strategy; what’s the runway of the company (how long will the company stay afloat autonomously if no more funding can be raised); is the firm’s moat strong enough and sustainable?

How the startups invited to Y Combinator twice went about getting investments share Oleg Z. Co-Founder & CTO? AXDRAFT (an Onit company) , AISDR , Director of Software Engineering at Onit

How did you decide to start a startup?

Both projects started with solving a problem that we were personally familiar with from previous experience. Yuriy Zaremba had encountered it in his previous job and decided to find an automation solution.

How did you decide to attract investments and where did you look for them?

Attracting investments allows us to move faster and develop the product. The investment was raised first from Y Combinator, and then from other Silicon Valley investors we met through Y Combinator.

How long did it take you to attract investors?

4-6 months including the YC program

What influence did investors have on your product?

We have very good investors and they are eager to help when we ask for advice or assistance

How long does it take for a startup to get back "on its feet"?

I believe that a product is "on its feet" when it is used by at least a few dozen users. Such a product can be built and put into use in a matter of weeks.

Conclusion:

Attracting an investor requires a strategic approach that combines a compelling value proposition, a strong team, market traction, a comprehensive business plan, and effective networking. By implementing these strategies, your startup can position itself as an attractive investment opportunity, increasing your chances of securing the funding necessary to fuel growth and success. Remember, every entrepreneur's journey is unique, so be persistent, adaptable, and open to feedback on your path to investor engagement.

Good luck on your exciting entrepreneurial journey!