5 secrets of investors every startup must be aware to get funded - Start-Up Hyderabad
Loading Startup Hyderabad

5 secrets of investors every startup must be aware to get funded

 2 months ago    

captureInvestors are key stakeholders in a startup’s future. That is why it is very important to plan short and long term goals accordingly. But it is not that easy to lure in your potential investors. To help you do that, here are 5 quick tips that you should be aware of to get funded quicker –

#1: Connect with the experiences of investors

Investors are people just like us – they have also tested the waters and know the taste of success and failure. Do not treat them just as a machine that will invest in your startup, but treat them as experienced guides who have walked the path and know the digs and tricks of the journey. Make use of their experiences and make a compelling story of your startup that relates to their own journey. This way you will be able to connect with the investors in a better way.

#2: Do your own research about the investors

Investors defiantly do their own research before funding a startup. This doesn’t mean that you don’t need to do you research. Find out about the past funding and investments of the firm. Observe their funding tracks and see in what kind of potential businesses do they seem to be interested. How much do they involve with the founders? How much money did they invest? What and how do they proceed after investment? Find answers to these questions and tailor your pitch accordingly.

#3: Understand the investor’s fears and focus on those key areas

An investor is always at a risk of loss. A risk of investing in the wrong market or wrong startup. Find out about their fears, and instill FOMO – Fear Of Missing Out. This means that create your pitch in such a way that you address all the fears of the investors without they mentioning about it. Create a compelling and personalized pitch such that they regret if they do not agree to invest in your startup. Let them know the profitable areas and the time required to convert the funds into profits.

#4: Connect with the analytic side of the investors

The investor may or may not let you know the analytics that go into deciding whether the startup is worth investing or not. That is why, it is important for you to let the investor know that you understand the analytical aspect that goes into the decision. This will help build confidence in the mind of the investor. You need to be very precise when it comes to analysis, numbers and financials of your startup. If you are unsure yourself, how do you think the investor will be able to take a decision?

#5: Answer to all the curiosities of the investor

You make think your pitch is just perfect and leaves no scope of questions. WRONG! How much ever you try, the investors will definitely have their own doubts and curiosities. Answer to all of them in the right way. If you do not have the answer of it immediately, let them know that you will get back to them with the answer, and make sure you do it. Give them detailed answer that satisfy the curiosity side of their brain.

For you, your pitch may be perfect. But keep in mind that your pitch is not your guide to everything. You have to prove to the investors that you are a person who believes in “less talk and more work”. Your ideas are only 10% of your startup, while the rest 90% is the execution and hard work that goes into converting your ideas into reality. Prove this to your investors and you are half way through the funding process. All the best!



Sravya Gowrisetty

Writing is a peculiar capability of an organism to transform caffeine into words. A blogger at bluecoldice.blogspot.com Heartfelt love for software, technical and freestyle writing and nevertheless got some humanitarian spirit.

image title here

Some title