– Chris Lynch is vice president of economic development at the Irvine Chamber of Commerce. The views expressed are his own. –
During the Internet boom, investors were mostly interested in the potential of a company. These days nothing is considered a sure thing and if your startup business isn’t on the right track, or if you haven’t done your homework as an entrepreneur, then you won’t have much luck raising capital.
The following are 10 tips to help you secure the financial support and funding your business may need to succeed.
1. Know your investor: Investors are typically intrigued by companies that fall within current trends, but that is not always the case. A large pharmaceutical company, for example may be more interested in a small biotech startup that shows potential to produce a new drug that they can’t produce themselves. Different angel and venture capitalists are looking for different things and most have a track record of the type of company, and even rate of return, they are looking for so do your homework and know who you are pitching to.
2. Know what they like: Investors want to see that your product/service not only fits a market, but also stands out amongst the competition. Without proper market research, a unique selling proposition, and a solid marketing plan, investors will be wary in investing in your idea. If you haven’t put research and planning into your product, don’t expect someone else to fund it.