The thrill of quitting your day job to bring to life the next big idea, pulling off sleepless nights to figure out how to do it amidst talks of funds drying up and finally finding a way to launch your own startup and keep it running is all not for the weak-hearted. Even several well-funded startups including Housing and Tiny Owl have downsized recently, forcing entrepreneurs to rethink about the kind of investors they want to work with. Entrepreneurial experts like Amit Damani believe that the onus is on you to evaluate the type of investors interested in your company.
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So here are the five traits you should look out for to zero in on the best possible match:
Industry expertise helps shape business models. Those who come with relevant experience can help you carve out the best success story. However, an important aspect to consider is their industry know-how and a frank evaluation regarding what they bring to the table in terms of your specific niche.
The ones with functional skills
A good investor should be able to pitch in with necessary skills, be it in the field of management, technical know-how or marketing. Engaging with supportive people who can guide you can prove to be a crucial aspect in prodding you to keep going.
The ones with phenomenal networks
Do not just look at their net worth. Watch out for their way of introducing strategic partnerships with other keen investors or even likely employees. Networks matter a lot in business, so choose someone with phenomenal connections that will help your company spread its wings.
The ones who foster a mutually-agreeable partnership
The success of a startup is still largely dependent on the meeting of minds. Go for investors who agree with your company’s vision and mission statements. This will form the base for a long-lasting and sustainable partnership. Mismatched ideas could give way to a conflict that spells doom for your startup.
The ones who nurture the same value system
Although values might not seem too important when things are going good, they will define your existence in the long run. Choose an investor who stands for the same values that you do. It is important for a company’s success to align everyone to a certain vision.
In an ideal scenario, an investor would exhibit all of these traits, but does one matter more than the others to you? Make a choice accordingly. Yes, the money they are willing to invest is important, and a great idea deserves to be funded. So, who is funding yours?