A startup needs to fuel its growth from investors like Angel investors, Venture Capital firms or from Crowdfunding platforms. But not all startup gets funds, there are many who doesn’t, right? But what are the criterion that an investor uses to decide which startup should get the funding?
Achal Ghai, who is the founder and MD of VC firms like Azara Capital and The Legacy Emirates Group and has spent his last 20 years in Corporate and Investment banking industry across continents will be speaking at a VCCircle Events. Here are a few insights of what Achal Ghai at VCCircle Events will be offering to his listeners.
According to him, these are the things an investor is looking for in a startup:
- The pioneering people of a startup will decide the fate of the company. And hence, the very first thing that an investor will notice, is that the team have its constituent members well deserving of their positions, and must have the right knowledge and skills in their field. Its members should complement each other and should be able to resolve their disputes easily.
- The produce, its need, and appeal – all are very important. If your product performs good but there’s not much need of the product, it will fail. And similarly, if your product is good and there’s enough need of it but looks difficult to handle or complicated, the product may fail. The timing of a product is important too, you should be able to convince the investors that it is the right time for the launch of the product.
- The size of the market is what attracts an investor, you should know the size of the market and how many units is required in the area you are planning to launch your product.
An investor is investing in your startup for money and you must have the necessary figures related to your startup and your target market.