6 Things Startups Should Do To
Appeal To Global Investors
 Introduction
 Key points that Startups should be focused on to attract global
investors
 Business Model
 Scalability
 Competitor Landscape
 Compliance
 Valuation & Structure
 Perfect
Management Team
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
Lets take a look at key points that Startups should be
focused on to attract global investors
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
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
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
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
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
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
Images are for representation purposes only

6 Things Startups Should Do To Attract Global Investors

  • 1.
    6 Things StartupsShould Do To Appeal To Global Investors
  • 2.
     Introduction  Keypoints that Startups should be focused on to attract global investors  Business Model  Scalability  Competitor Landscape  Compliance  Valuation & Structure  Perfect Management Team
  • 3.
    Introduction  Global investorsare 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 alook at key points that Startups should be focused on to attract global investors
  • 5.
    Business Model  Becrystal 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 awareof 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 isimportant 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  Theright 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
  • 11.
    Images are forrepresentation purposes only