What criteria are you usually evaluated on as a founder?
Today, I want to lift the veil, if not completely, then at least partially, on the world of project selection for further financing. And show startup founders what investors see and think when a founder comes to them and wants to get, say, a million for business development.
So, here is the sieve through which the personal characteristics and professional qualities of startup founders are sifted. Or — in which cases you will definitely be denied funding:
- Your plans as a business owner are detached from reality.
Investors are interested in value, whether your product/service is in demand and whether it solves real problems for people.
- You lack leadership skills.
The chief ideologist of the start-up is the driver of the entire process. If they lack the leadership qualities, skills, and experience to bring the project to a logical conclusion, this will not escape the investor’s attention.
- You do not know how to set priorities.
If project participants avoid setting priorities or set them incorrectly, it jeopardises the success of the entire venture. The project must have a roadmap for its development. It should be logical, economical, and describe the critical path of the startup’s development. Even a very good product may not find its consumer without a go2market strategy.
- You are concealing the difficulties of the project.
Start-up managers cannot remain silent about the problems and difficulties their team has encountered. First and foremost, they cannot conceal them from themselves. This undermines trust in you as a businessman and partner and will prevent the business from developing.
- You lack self-motivation and faith in your own business.
If the project participants have lost interest in its completion, this is a clear signal to the investor that you will not have enough energy to drive the business for 3-5 years until it starts generating income.
Next time, I will tell you what characteristics of a startup investors usually pay attention to first.
