How’s your management team? Investors need to know that there is a succession plan in place in case something happens to you, and they need to have a sense of who is likely to join your team. “What gets investors very excited is the folks looking to add to your management team should you get the investment,â€ says Redus.
VENTURE CAPITAL: Somewhat similar to angel investing but venture capital comes from institutional investors. According to Redus, in most cases, the minimum investment is no lower than $1 million and runs upward of $10 million.
What you need to ask yourself:
Does your business address a large market? Where venture capital is concerned, the market size should likely be at least 1 billion. It’s imperative to convince investors that you can corner at least 1%-2% of this market.
What’s your competitive advantage? In addition toÂ market size, investors look for differentiation. What makes your business so unique in terms of a patent, difficulty of duplication, or exclusivity?
What’s your growth potential? Your business should have at least $30 to $50 million in growth potential, again, for a significant risk. Investors are expecting a significant return.