If you have a viable idea that could help you to profit in the financial industry but you need capital in order to make it work, you may look for an investor. By doing so, you can bring your idea to market.
As you identify potential investors, you may wonder whether they’re a good fit for your team. You may also want to know what they’re looking for in a new startup.
All Investors are Different
While all investors tend to look at the same basic things, at the end of the day, they may place more priority on some factors than on others. It’s important for you to do your research on the factors that each investor places weight on, before you approach them.
Investors from Macdonald Ventures and other organizations want to profit from your idea. You’ll need to be able to show them that your innovation can help them to make money.
Your projections should not just be based on hope. You’ll have to look at current market conditions and use these to determine the financial value of your product or service.
If you were approaching a bank or another financial institution, you would need to have a business plan. The same applies when you’re entering discussions with investors.
They also want to know that you have a solid plan in place for each aspect of your business. This shows that you’ve done research on your market and you understand it completely. Whether you have a product or service, provide details on how you plan to sell it.
Investors aren’t looking for ideas that completely reinvent the wheel. However, they do want to know that your idea is unique enough to stand out in your market.
It should allow your team to do something better than other technology in the financial sector. If an idea like yours already exists in the market, potential supporters want to know why yours brings additional value to consumers or businesses.
How Their Money Will Be Spent
Before anyone puts their money into your business, they’ll want details on how it will be spent. They’re not going to give an arbitrary sum to spend in a way that doesn’t help your business to grow.
Accountability should be a strong element of your plan. You’ll need to be able to track where the money is going and how it will help your investors to profit.