Tips to get Investors to Invest in your Startup Business

You’ve got an innovative idea for a Startup Business, the spirit of an entrepreneur, a name for your business, and a solid crew willing to “go all in” on your idea. All you need is the actual funds to get your business launched. If Shark Tank isn’t returning your calls and Mom and Dad can’t swing the extra dough, how can you get a venture investor to help?

Here are some tips to help you and your Startup idea, be “the Unicorn” investors are searching for.

Be confident but not too confident: Investors aren’t just investing in your idea, they’re investing in you. There’s a fine line between a confident and compelling pitch, and coming off as arrogant and obnoxious. Even though you may never have launched a business before, you should have solid examples of your ability to turn ideas into reality. Once you launch, you may encounter negative feedback in the market, and you must be flexible enough to change directions or re-organize. Being rigid and stubborn won’t work for investors.
Make sure you have a solid management team: Investors want to back companies with leadership with the ability to execute the business plan effectively. Make sure the people you are putting in charge have the expertise, passion and “know how” to carry out your vision. In an article for Medium.com, MobileMonkey CEO Larry Kim quotes his colleague David Frankel as saying, “Even if you have a mind-blowing idea in an exciting market space…, how your team executes on it is what makes the difference between a $25 million, $250 million, and $2.5 billion startup.”
Is there a strong potential market for your business?: Venture capitalists will ask specific questions to ensure that your idea, has solid potential for success in the market. Make sure you’re prepared to share with investors, the percentage of the market you plan to capture over a specific time frame. Be equipped with information on what type of growth potential you envision and how quickly you expect to scale.
Have a plan and an effective system: It takes a strong structure for Startups to operate and grow. An effective system that’s been proven to work and also a solid plan, shows VC’s that you’ve defined your goals and are ready to execute.
Have a sense of conviction: You need to be passionate about your idea but also be willing to see your venture through. Investors want to know that you’re “in it for the long haul”, and committed to seeing your vision come to fruition.

Hopefully, we’ve helped you identify the important factors would-be investors will consider, before backing your startup. Venture capitalists love to invest their money in the companies they feel they can add the most value to. They want to know that the founders they invest in, are putting their all into what they’re doing. Make sure investors feel the energy and passion you have for your idea, while giving them the confidence that you’ve done the research and have a solid plan, system and team in place to make your business a success.

The Startup business insurance specialists at McSweeney & Ricci will get to know your business and will only recommend coverage suited to your business’ particular needs and growth stage. Even businesses in seed stage, are at risk, and need the proper levels of insurance protection. With a varied company selection, we are able to offer your business the coverage best suited to your needs at a price that meets with your budget. We partner with you to grow your business. Contact us today at 1-844-501-1360 or connect with us via email.

Tips to get Investors to Invest in your Startup Business