Investors keep looking for great startups. They also have the pressure to perform. Their fund managers need to ensure the ROI for the investor's investors. So they have to keep a lot of moving items in their radar to make a startup successful.
They want you to be successful
Though 8 out of 10 funded startups fail, VCs keep doing that. The 2 successful ones compensate well above the rest failed. Every investor looks at you with optimism that you will succeed. The only issue is that the startups must tune themselves to get measured by the investors. It is new to the startups and hence they do not understand the measurements in the initial stages.
Investors may be passive or active, i.e. after putting money some investors leave all to you to manage. Some other investors actively involve in mentoring you. Apart from the money they invest, they also look at how much time they need to spend with you.
Will you invest all your savings?
For your startup, will you go all-in with your savings? Will you put all your money in the startup? Are you ready to take that risk? The same question will be in the mind of the investor. They look for your risk appetite.
It is all about the team.
The team is the golden goose and not just the product. Investors look at the team cohesion and competencies. Most funded companies that have tasted success have got great founding team members. The capabilities of the founding team must be complementing to ensure that the collective wisdom is very high.
Your next set of hires is also critical. The moment you cross 50 clients, the founding team cannot focus on every client. The 2nd level leadership must take care of that. So ensure that the vision is properly communicated to the next level leadership team.
Whether you launch the product for the first time or you bring in a new feature to your existing product, you must time it properly. Investors are willing to get survey details to see that the timing is right. The top most item that made unicorns is timing.
WHAT INVESTORS DO NOT LIKE:
- Me too product
- Undelivered promises
- Lack of commitment even by 1%
- Unable to foresee risks
You have the right to walk out. But your investors are answerable to so many. So make sure that every penny invested by the investors is well spent and ensures future earnings.