lead: to raise funds in fact this is a two-way choice, in addition to some basic background investigation, there are 5 problems is the entrepreneur should, or must be presented to you the potential investors.
when you use a large part of the ownership of the enterprise in exchange for an investment, how do you know that they chose the right investors?
although it looks like a process to win investors, it is a two-way choice. Investors have money to invest, does not mean that he or the company for your business and can bring additional value. When they choose to invest in your business, you are also looking for investors, and it is also possible to choose partners who need to work together for many years.
in addition to some basic background checks, there are 5 problems, the entrepreneur should, or must be addressed to your potential investors.
1 what is the added value of the investor,
to be honest, even though it sounds funny, I’ve seen investors who don’t know anything about their projects, and more than once. Entrepreneurs need to seriously consider, in addition to money, what do you need to get from investors. You need a complete understanding of how to start from scratch and build a business, is a well versed in financing way and have enough experience to guide you, or one in a particular field, such as sales, marketing and product development experience who
choose to invest in a certain extent and because this person will marry different approaches but equally satisfactory results, into your life, and you for a long time in a boat alongside. In fact, investors will have a good general, so entrepreneurs must choose a good fit for you or your company’s investors.
2 does the investor understand your venture?
looking for investors is not only to seek funding, consider whether investors understand your business model, whether you have experience in this industry, often very important. Entrepreneurs should be aware of the development of the company’s investors and its focus on the field, which often reflects the investors in the industry you are engaged in a wider range of knowledge.
, for example, you start a digital marketing venture, then you need to pay attention to whether this is the first time the investor to invest in such entrepreneurial projects. If you do not have the previous experience, the investor is likely to have no industry related contacts, or do not have the ability to give you the right advice or decision. In addition to venture capital company’s report, LinkedIn is often an important channel to help you understand the potential investors.
3 how interested are investors in the area of your startup project?
is like investors need to understand you