6 Things Startups Should Do To Appeal To Global Investors

Introduction

Key points that Startups should be focused on to attract global investors

Business Model Scalability Competitor Landscape Compliance Valuation & Structure Perfect

Management Team

Introduction Global investors are continuously looking for best growth corridors

They will invest where opportunity exists

It is not necessary that a startup has to be focused on global market

Startups should be very clear on market segments they will own

Lets take a look at key points that Startups should be focused on to attract global investors

Business Model

Be crystal clear on the business model & how it will prove successful

Unit economics should make sense before attracting any investment

Business model should be tested & initial traction proven profitably

Model should be applicable in different markets & have a global outlook

Unique positioning should be determined

Investors look to fund unique projects that are not easily replicated

Global Investors are motivated by the next big thing like anyone else

Scalability

Your venture & the underlying service offering have to be scalable As a venture grows various aspects of the business change Sufficient people should be interested to scale the business A really cool, unique idea, may not be fundable if it is not scalable Be aware of market size & market segment as investors need to believe a

market opportunity exists & revenues can be generated Impacts of growth should be clearly thought through & step changes should be

well defined

Competitor Landscape

Be aware of who the competitors are Competitors may be using different business models but approaching the

same opportunity

Cost of competition & how to defend your venture should be determined Be very clear what your plans are for different scenarios & have some

scenario planning

Compliance

Compliance is important for global investors while it may not be emphasized as much by local investors

Startups must be very vigilant with compliance on various fronts like taxation & structure of the company board & company secretary compliances banking & FDI compliances various employment & benefits compliances

No investor likes surprises soon after they invested Non compliance may lead to injunctions & other legal matters

Valuation & Structure

You must become familiar with various structures of debt & equity It is important to understand differences & what associated terms

mean

Different valuations may be attached to different structures You need to be clear on how much you are willing to dilute & what

amount are you trying to raise

Break even position & time horizon should be indomitable

Perfect Management Team

The right team is the most important factor in attracting venture capital funding

Investors are highly likely not to invest if they are not impressed with your management team

Early stage investing has high degrees of uncertainty venture capitalists require a high level of conviction that the team has necessary skills, domain expertise & diversity

Your team should have complementary skills with a track record of collaborating well

Images are for representation purposes only