Is there a Secret Sauce to investing?
In today’s competitive investment world, there are angels, incubators, seed funds, early stage and late funds. Each have their own way of evaluating opportunities and they carefully make their investments. To some, Idea is important; to others it is the technology and whole lot of them, team dynamics. The truth of the matter is still simple “no one knows for sure the secret sauce to 100% return”.
This is the reason; every venture capital will spread their investments, to as many potentially lucrative deals as possible. They know most of the companies they invest in will not make it but that is the name of the game. They are looking for the ones, which do turn the table. Those are the companies they will support fully. Those are the companies, which will provide returns to the Funds LP’s. These companies are the ones, which are sought after and fought over by every venture capitalist that knows them.
Believe in your idea
How do you make sure you standout and investors compete for your deal. Instead of pitching your company, what do you do so venture capitals are pitching their funds to you?
Startup founders have one distinct advantage over the venture capitalists. VC’s do not know what is the next big thing but every startup founder does. We truly believe, what we are about to start is going to change the world. I personally feel it’s the right stand to take, if you don’t believe in your own idea, hardly anyone else will go out of their way to convince you.
Here are helpful steps to get funded:
Believing is a start,
Having a good idea helps,
Good co-founders increase changes of success,
building a product that is easy to use and has a need in the market also helps, finding good investors, advisors and board members increases your chances
But the biggest factor in getting the VC’s to chase you is:
Traction trumps everything else
Gain traction fast and every VC in the world will be there with their cheque books, willing, ready and wanting to invest in you and your business.
Don’t chase money, chase growth and money will follow.