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Top 12 Traits Investors Look For When Funding A Company

Investors Perspective 

To convince a funder that investing in your business is a smart move, you have to know which traits what excites them, and what aligns with their goals.

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Business Team

1. A Market They Know and Understand

Familiarity is an advantage. Startup investors are searching for opportunities in sectors that fit their expertise. Familiarity reduces their risk potential.

4. Scalability

Stagnation is not an advantage. Investors look for businesses that are poised to thrive and deliver a worthwhile return.

7. Detailed Marketing Plan

Regardless of what stage your business is currently operating in, investors will want to see a marketing plan.

10. A Long-Term Vision

What are your goals for growth?
What are you aiming for in terms of eventual market reach? How quickly and extensively do you plan to scale?

2. Strong Leadership Team

Leaders with a history of success are apt to be more reassuring to an investor.

5. Promising Financial Projections

It’s essential to crunch the numbers and demonstrate your potential for a healthy financial outlook.

8. Transparency

You don’t have to dive into every complexity associated with your business effort, but you do need to elicit trust.

11. Commercialization Plan

A commercialization strategy is a plan that outlines how to bring a product or service to the market. 

3. Investment Diversity

Many startup investors work with several companies to diversify.

6. Demonstrations of Market Interest

Your offering has to be relevant and desired in the marketplace, and investors will want to see proof.

9. Realistic & Reasonable Startup Costs

Over-projecting your startup’s value can have the opposite effect you’re seeking.

12. Cross-Industry Plan

Cross-Industry strategic fit between two or more businesses exists whenever one or more activities/products/systems comprising the value chains of different businesses are sufficiently similar to present opportunities.

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