So, you have the ultimate idea. You’ve put hundreds of hours and more money than you would like to admit on your product. Maybe you’ve come as far as having an actual prototype or even started your company? You love your idea and you firmly believe in its potential on the market. All you need now… is more money. Your own money might not be enough to launch your business and give it the opportunity to be the success it deserves.
One way of getting a hold on that money is via venture capital. Venture capital is a type of financing that investors provide to start-up companies and other companies that are believed to deliver long-term growth.
With extensive experience in VC companies, Patrik Söderlund has the real know-how in finance for start-ups. Patrik is an active venture player, trained development engineer and one of the founders of the Innovation Matchmaking company WIN. If there’s anyone who knows how to boost your chances of getting a hold on venture capital, it’s this guy. We asked him about his 5 best tips. This is:
5 THINGS START-UPS NEED TO KNOW WHEN SEARCHING FOR VC INVESTMENTS:
- Keep track of your market.
Market analysis is the entrepreneur’s most important tool. It is key not to believe, but to know in every detail what the customers wants and to be able to sell your product.
- Keep up with market developments.
The world is spinning at an increasing speed. Keeping track of market developments is therefore one of the biggest challenges for an entrepreneur, but oh so important!
- Be reliable!
Investors are looking for entrepreneurs who are credible in being able to realize their plans. We invest in people with companies not companies alone.
- Deliver between meetings.
One thing that discourage investors are entrepreneurs who do not deliver between meetings. Investors are generally speaking driven by expectations and are quick to overinterpret negative signals. But on the other hand, they also have a tendency to overinterpret positive signals! Predictability is key.
- Trust your gut feeling!
All investors are different and being able to differentiate between one investor and another is crucial. Be as thorough as you would be in choosing your spouse. It has to feel right. If it doesn’t, leave it be. There will be more opportunities!