JumpStartCTO (www.jumpstartcto.com) is a NYC based consulting firm that helps entrepreneurs with the early stages of ventures. Their goal is to help build working partnerships between entrepreneurs who have ideas for products and those professionals who have the knowhow and ability to productize their ideas and bring them to the market. This video is about the first stages of
Approaching investors is not an easy process. While finding investors may be easy, the hard part comes when you have to approach them. There are many kinds of investors, so there isn't only one right way to approach an investor, but there are proper ways of anticipating and coping with some of the feedback you might receive.
What to expect when approaching business seed investors.
To start with, remember that each investor is different. Their given hunger for risk, their net worth, their previous experiences and even the amount of money he is willing to risk, are all factors that make each investor unique. Consequently, there is some basic information that you need to collect prior to approaching an investor, in order for you to answer his questions and also for you to understand his preferences
Investors have different criteria and values. When analyzing his investment, for example, an investor might juxtapose the importance of the venture idea itself with the quality of the team of people behind it. Some people will place more importance on the team rather than the idea itself and hence they would rather invest in the ability of the team to deliver the goods than assume that the idea, if good enough, will be successful no matter what.
Another insight when planning to approach an investor is to count on his ability to help you with the process of building your startup. Money is not the only thing he can help you get, some investors may be more valuable if they were more actively involved in the process - while keeping eye on their investment they can help get the right people involved to make sure the capital is being used in the right way. This prove to make your team more productive, because experienced investors often have lots of know how that can be useful in certain areas and can benefit the process as a whole.
For more on this and to read other articles related to using a CTO in a part-time consulting capacity, go to http://jumpstartcto.com. For comments and inquiries, you can write David directly at firstname.lastname@example.org