INVESTOR INSIGHT
Posted on: May 12, 2016, by : admin

We live in a world of Ideas and innovation. Everyday innumerable ideas crop up and seek funding to become real from a concept. The very rise of companies like Kick Starter mirrors this fact. Some ideas, however, might need an immediate larger fund. Hence the need for an Angel investor hasn’t ceased to exist despite multiple sources opening up. It is so easy to get carried away by one’s idea that in the process one discounts that the investor may not necessarily share the vision. Hence, before deciding to bring an investor on board to invest in the idea, it is essential to satisfy their criteria before getting to the actual core idea. Below are some of the things the Investors invest in apart from the idea:

  1. Business Plan: While there may be several similar ideas, a well-written business plan is what sets them apart. A business plan includes not just the idea but also a road map of the execution of the idea and its future. This helps the investor also judge the viability of the project and how it fits into their personal investment plans.
  2. Monetization strategy: Strength of the monetization strategy also plays an important role in an idea being funded. How will the money invested in the business be earned back?  
  3. Team: More than investing on the idea itself, investors look to the individual or the team behind the idea. That’s one of the things that play a crucial role in their decision-making. While the idea, no matter how disruptive, has chances of unpredicted outcomes, people involved with the idea bring some certainty to the table.
  4. Accessible market: The investors prefer investing in an idea that has a larger accessible market. The reason is obvious as bigger the market better the chances of return.
  5. Differentiator: The idea may either be disruptive or a variant to make the existing systems better. In both the situations, an investor looks for those aspects that set the idea apart form the clutter.

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