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What Investors Look For...
Investors have a
quick check list of what they are looking for in an
- A better/faster/cheaper mousetrap. Changing
the economy of a pre-existing business is less risky, but
also has less of an upside.
- A brave, new world project. This changes the
perception of the problem by redefining the paradigm and
changing the "rules of the game."
- Category leadership. Will the company be the Number
One business in its industry?
- Market risk. Will the customer pay for the
product/service? What is the viability of the business? Will
it take too much time and money to find a market? Compared
with technology or personnel risk, market risk is expensive.
- Growth and value creation. The faster and easier
the model is proven in its life cycle, the better.
- Defensibility. Exclusive arrangements with
partners, best-in-class technologies, and a team with a
history of demonstrated success incur favor and confidence.
- Experience. The more experience that is relevant to
your idea, the better. Getting the expertise usually
involves a lot of pain and suffering.