Global investors are looking for the best growth corridors and will invest where they see the opportunity. Lets take a look at 6 Things Startups Should Do To Appeal To Global Investors
2. Introduction
Key points that Startups should be focused on to attract global
investors
Business Model
Scalability
Competitor Landscape
Compliance
Valuation & Structure
Perfect
Management Team
3. Introduction
Global investors are continuously looking for best growth corridors
They will invest where opportunity exists
It is not necessary that a startup has to be focused on global market
Startups should be very clear on market segments they will own
4. Lets take a look at key points that Startups should be
focused on to attract global investors
5. Business Model
Be crystal clear on the business model & how it will prove successful
Unit economics should make sense before attracting any investment
Business model should be tested & initial traction proven profitably
Model should be applicable in different markets & have a global outlook
Unique positioning should be determined
Investors look to fund unique projects that are not easily replicated
Global Investors are motivated by the next big thing like anyone else
6. Scalability
Your venture & the underlying service offering have to be scalable
As a venture grows various aspects of the business change
Sufficient people should be interested to scale the business
A really cool, unique idea, may not be fundable if it is not scalable
Be aware of market size & market segment as investors need to believe a
market opportunity exists & revenues can be generated
Impacts of growth should be clearly thought through & step changes should be
well defined
7. Competitor
Landscape
Be aware of who the competitors are
Competitors may be using different business models but approaching the
same opportunity
Cost of competition & how to defend your venture should be determined
Be very clear what your plans are for different scenarios & have some
scenario planning
8. Compliance
Compliance is important for global investors while it may not be
emphasized as much by local investors
Startups must be very vigilant with compliance on various fronts like
taxation & structure of the company
board & company secretary compliances
banking & FDI compliances
various employment & benefits compliances
No investor likes surprises soon after they invested
Non compliance may lead to injunctions & other legal matters
9. Valuation & Structure
You must become familiar with various structures of debt & equity
It is important to understand differences & what associated terms
mean
Different valuations may be attached to different structures
You need to be clear on how much you are willing to dilute & what
amount are you trying to raise
Break even position & time horizon should be indomitable
10. Perfect
Management Team
The right team is the most important factor in attracting venture
capital funding
Investors are highly likely not to invest if they are not impressed with
your management team
Early stage investing has high degrees of uncertainty venture
capitalists require a high level of conviction that the team has
necessary skills, domain expertise & diversity
Your team should have complementary skills with a track record of
collaborating well