Criteria for Investors in Startups

The criteria that startups should have are very important in terms of getting financial support from investors in the process of starting a business. Startups can grow their business thanks to investment. When startups cannot meet their financial needs, they start to have great difficulty in sustainability. Therefore, this situation causes startup to seek investment. But startups need to pay close attention to some points in order to get investment.

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5 Criteria Investors Pay Attention to in Startups

The development and growth of a startup is possible with investments. In order for startups to be approved by investors and then receive financial support, they need to pay close attention to the criteria that startups should have. We can list the 5 criteria that attract investors' attention in startups as follows:

The Team

Investors conduct a very detailed research before providing financial support. In particular, they investigate the team of the startup they intend to invest in to the finest point. They look at many points, from the experience of the team to whether it is reliable or not. The investor looks at how a startup defines its project. It examines what he thinks about his project and his commitment to his project. Whether they really embrace the project as a team is very important for investors to provide financial support.

Unique

Unique sales technique must be adopted. Another point that investors examine in startups is the uniqueness of the business model they develop. A unique and successfully created business model gets every plus point from investors.

Competition with Market Potential

Investors also look at whether the developed product/service is in demand in the market. The market potential of the business model and the barriers to market entry are also investigated. It is also important for investors to see how much startups care about the market potential and competition of the business model they develop.

The problem

Among the criteria that investors expect from startups is their behavior in the face of real current problems. They pay attention to how they deal with real current problems, what measures they take to prevent them from being affected while developing the project.

Scalability

It is very valuable for investors when entrepreneurs aim for foreign markets. Fast-growing and globally recognized startups are always very valuable in the eyes of investors.

Feasibility

The feasibility assessment should show positive results for the business model. This is entirely dependent on the careful and accurate work of the startups.

Business Model

Startups that design their business model correctly get full marks from investors. Monetization of a product/service developed or planned to be developed is vital for financial support.

Definitive Investment Planning

Investors want a clear plan for their investment. How much of the investment will be spent and where it will be spent must be determined and presented to the investor in the form of a report.

We tried to give you brief information about the criteria that should be in startups. If you have any points you want to specify on the subject, you can specify in the comments section.