Securing funding for your business idea through pitch is a thrilling but intimidating prospect.
You’ve likely spent hours honing your pitch, perfecting your financials, and dreaming of the moment an investor says “yes.”
But while Securing funding for your business idea is a thrilling but intimidating prospect.
You’ve likely spent hours honing your pitch, perfecting your financials, and dreaming of the moment an investor says “yes.”
But while a great business plan is essential, it’s only one piece of the puzzle.
Investors are betting on you, the entrepreneur, just as much as your idea.
What are the intangible qualities that make investors eager to open their checkbooks? A great business plan is essential, it’s only one piece of the puzzle.
Investors are betting on you, the entrepreneur, just as much as your idea.
What are the intangible qualities that make investors eager to open their checkbooks?
Here’s a list of 19 things investors want and expect – insights that could make all the difference in your funding journey.
Building a Foundation of Trust
1. A well-thought-out and researched business idea and plan
This isn’t just about having a good idea; it’s about demonstrating you’ve done your homework.
Investors want to see a deep understanding of your market, competitors, and a realistic path to success.
2. Organization
Disorganized founders raise red flags.
Show investors you’re meticulous with details, and timelines, and have a system to manage growth.
3. Integrity and character
Investors put their money – and reputations – on the line.
They need to trust you’ll make ethical decisions, own your mistakes, and always act in the best interests of the company.
4. Answers to obvious questions
Fumbling over basic questions about your industry or business model signals unpreparedness.
Anticipate the tough questions and have well-reasoned answers ready.
5. That you know what you don’t know and don’t have, but you have a plan to get it
No one expects you to be an expert in everything.
Investors appreciate self-awareness and a proactive plan to fill in your knowledge or skill gaps.
Proving Your Potential
6. Market potential
Is there a sizable, reachable market hungry for your solution?
Investors want to see the potential for significant growth, not just a niche idea.
7. Plans for repayment if seeking a loan
Debt financing comes with obligations.
Outline a clear repayment strategy that demonstrates both your responsibility and the business’s ability to generate cash flow.
8. Plans for additional rounds of funding and/or exits
Investors want their money back – and more.
Show them you’ve thought through potential exit strategies (IPO, acquisition) or how future funding rounds will fuel continued growth.
9. That you have put your heart into the project
Pure passion can be contagious.
Investors want to see the fire in your belly, the belief in your idea that will carry you through the inevitable challenges.
10. That you have and will keep skin in the game
Are you personally invested – financially and otherwise – in your venture?
This signals commitment and aligns your interests with the investors’.
11. Feedback from others
Have you sought mentorship, advisors, or customer feedback?
It shows you value external input and are committed to continuous improvement.
12. Proof of demand
Market research is good, but real traction is even better.
Traction can be pre-orders, a growing waitlist, or early revenue – anything that proves people are willing to pay for what you’re offering.
The Partnership Factor
13. That they can get along with you
Building a company is a long-term relationship.
Investors want to work with founders they like, and respect and can have difficult conversations with when necessary.
14. That you are coachable
Even seasoned entrepreneurs need guidance.
A willingness to learn, adapt, and take advice is invaluable from an investor’s perspective.
15. Consideration of the safety of their capital and time
Investors have their own risks to manage.
Show them you understand the importance of their investment and have a plan to minimize potential losses.
16. A good match
Not every investor is the right fit for every business.
Look for investors whose experience aligns with your industry and whose values match your own
17. Passion for your product or service
Investors want to back ideas they believe in.
Your enthusiasm for your product or service should be evident and persuasive
18. Passion for connecting with and working with them
The investor-founder relationship is a two-way street.
Demonstrate a genuine interest in their expertise and a desire to build a collaborative partnership.
19. An opportunity that will take them closer to their goals
Investors have their own ambitions, whether it’s financial returns or driving impact in a specific sector.
Show them how your venture aligns with their goals and presents a mutually beneficial opportunity.
Beyond the Checklist: The “It” Factor
While these 19 items provide a solid framework, some of the most important qualities investors look for are less tangible.
Here are a few “bonus” traits that can make you stand out:
- Resilience: Startups face countless obstacles. Investors want founders who can bounce back from setbacks and learn from failures.
- Resourcefulness: The ability to do a lot with a little is a hallmark of successful entrepreneurs. Show investors you’re a creative problem-solver.
- Vision: Investors want to back more than just a product; they want to believe in your long-term vision for the company and its potential impact.
Closing Thoughts
Remember, investors are looking for a compelling combination of a strong business idea AND a founder they believe in.
By embodying these qualities, you’ll not only increase your chances of securing funding but build the foundation for a successful and rewarding partnership.
It’s also important to remember that the funding landscape is constantly evolving.
Stay up-to-date on industry trends, and investor preferences, and be prepared to adjust your pitch accordingly.
Call to Action
Which of these 19 items do you find most challenging as a potential entrepreneur?
Share your thoughts in the comments and let’s spark a conversation!
