What Investors Look For Before Investing In A Startup.
What Investors Look For Before Investing In A Startup.

What Investors Look For Before Investing In A Startup.

Startup Founders are always on the lookout for those that would invest in their seemingly great business ideas. 

They are always searching for the right connections and professionals that would believe in what they are building and willing to invest some of their money to scale the business. 

Most times we are envious of the successes some Entrepreneurs enjoy but do not realize what they may have passed through and how tough it may have been to find Investors. 

Nobody wants to waste their hard-earned money, So there are certain things investors look for before investing in a startup. If a startup fails to attract investors, it may be difficult for it to grow and scale faster. 

According to Forbes, these are some things a startup should possess to attract the right investors.

  1. Founders who are passionate and have tough Skin: Founders should have Confidence, Passion, and the ability to keep going even when they get no for an answer. No matter how long you may have received negative answers, keep asking till you get a positive answer. Investors look for founders who are dogged and willing to invest their money.
  2. Traction:  A new business needs to prove that its product and services are marketable. Investors look for ideas with solid proof. The startup should show positive signs of its ability to succeed and grow. The statistics and data should be indicating that the idea would perform well if given the appropriate funds and expertise.
  3. Competitive Advantage: A startup should have something that makes it Unique. Even if it is not a totally new idea or concept, the startup should be able to introduce an improvement or upgrade on an already existing idea. Investors look for what makes your startup different from the rest.
  4. Team Members: The people behind the startup is also a factor when investors want to invest in a startup. Investors want to know you and your team have procedures and policies already existing to prove that their investment would not be wasted. The team members should be capable and experts in their areas of operation.
  5. X-Factor: According to Entrepreneur, the X-Factor is a clicking moment that happens between an investor and a founder that plays into the investment decision. This could happen because of similar work or educational experiences. Sometimes, it could just be that the startup founder is likable. At other times, the investor could just be following his instinct. 

Did you know that you could find investors for your startup on Bixex? You never can tell who is watching. How about you create an account and a business page here.

READ ALSO: Business Startup Ideas To Consider In 2021.


Emmanuella Chitoom

A Certified Realtor & high quality wears dealer ????????????????,base in Abuja Nigeria.

3 年

Very helpful Thanks Chikaodi Emmanuel ?? ??

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Jarmila Zá?ická

Empowering you to go from employee to independent ?? Want to break free from corporate life to create your own purposeful, soul-led business, live flexibly & on your own terms? ?? I guide you on that exhilarating journey

3 年

Intetesting insights, Chikaodi Emmanuel ?? ??

Barbara Vercruysse

Global Kindness Advocate | Operational Excellence | Transformation Management | Leadership Thinker & Mentor | President PWI-Brussels | Public Speaker | Top 10 Thought Leaders on Mental Health | Bestselling Author

3 年
Dr. Faith N.

Faith-Driven Entreprenuer | Empowering African Youths for Global Opportunities | Fixing Skills Gap Issues in Africa | Developing Talents and Connecting Job Opportunities | Expanding Christ's Kingdom

3 年

Brilliantly useful ?

Innocent Okpali, ACA, ACICRM, B.SC.

Chartered Accountant/Tax/Finance /Audit/Internal Control/ Marine Enthusiast.

3 年

Very useful Post. Thanks for sharing.

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