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Attention Entrepreneurs
Some practical tips for attracting an investment

Referral By Trusted Source

Networking isnt just about knowing the right people, its also about the knowing that the right people know you.
People do business with people, and if you can convince and are able to deliver, youre already ahead of the game.


You need to have a trusted referral or otherwise you are  just wasting your time.
You must find a way to rise above the static. Without a doubt, the best way to do that is to get referred to the venture investor by a trusted source

"Most venture capitalists believe that ideas are a dime a dozen: only execution skills count."  William A. Sahlmanink
 
Big
As a general rule of thumb, an early stage technology investor needs to be able to build a case that the investee company can, given the right growth strategy and funding, command a really sizable value within a reasonable
time. This requires the company to target a large market (or potential market) and be led by a management team with the ambition to build a global business quickly.

Be Commercial Not Technical
Having the best technology does not automatically lead to a successful business. There are thousands of examples of best-of-breed technology that never became a commercial success because the commercial exploitation of the opportunity did not match the quality of the technology. Make sure all aspects of your business are world-class.

Demonstrate The Business Case
In general, big companies dont buy from small, early stage companies because the commercial risks are too great and existing relationships too secure unless the business case is too compelling to ignore. The entrepreneur must be able to communicate the business benefits his technology delivers to customers and not just its features and functions.

Get External Validation
The entrepreneur should seek to get as much evidence as possible from external sources about the value proposition. Revenues are ideal evidence. However, endorsements from relevant third parties who have evaluated the technology, conducted trials or are prepared to distribute it are also important.

Know What You Dont Know
Early stage investors accept that management teams will be incomplete and effort will be required to recruit key people into senior roles. Entrepreneurs need to acknowledge their own limitations and be prepared to work in partnership with the investors to plug the gaps. Accepting there are gaps, and knowing what they are,  the first steps towards achieving this.

Get Above The Noise
The average investor receives one new investment proposition every day (some get many more) and will invest in less than one percent of the deals he sees. Simply meeting the investors criteria is not enough where deals compete for a limited supply of capital and, just as importantly, the investors limited time and attention.

So what makes a business stand out from the crowd?

The quality of its relationship with the investor
  


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