Home Conferences Three things you can do to attract an investor

Three things you can do to attract an investor

by admin

I’ll start with a little background. Last week we participated in the Polar Bear Pitching 2016. (held in the north of Finland, in Oulu). It is a global investment event that brings together investors (Microsoft, Superhero Capital, Startup Catapult, CAP A, Inventure, Invesdor, Karma Ventures, Vision+, RSM International Ltd., Butterfly Ventures), media (Forbes, Bloomberg Business Week, TechCrunch, ArcticStartup, Computer Weekly, Good News from Finland, Kaleva, Nordic Startup Pitch, The Next Web, TEK Magazine, VentureBeat, ZDNet) and 20 top startups – finalists from around the world in one place.
The involvement of the attendees at the event was at a high level. Every stranger we started out telling about our product already knew about it-that’s really valuable. However, when we moved on to questions about collaboration, a number of limitations loomed. We’ve highlighted the three most important ones, and hope they will save you time and money and be helpful in attracting an investor. This works as long as you already have a working prototype and the project is scalable.
So here’s what you need to do.
1. Registering a company abroad. In addition to economic instability, investment protection in Russia is lame on both legs, so investing in Russian companies involves great risks for the investor. Personally, we have several cases where investors said they like the product, but they only work in the markets in Europe, the USA, … not in Russia. (If you are interested in how to register a company abroad – write in the comments, what country you are interested in – we will try to tell you).
2. Show steady company growth : the number of customers should be constantly growing. In the fight comes a report with detailed product analytics, which includes cohort analysis and metrics on the number and behavior of users.
3. Show that the product is being bought. The likelihood of attracting investment is greatly increased if monetization has already begun and the economics are converging. For example, you have a mobile app that you distribute by subscription $3 per year, it costs you $1 to attract a user, your monthly expenses (salary, rent, taxes) are $3000 per month, then your advertising budget must be $1500 per month to reach break-even point. Let’s assume you have it. Just at this point you need the investment to grow by multiples.
Fulfillment of these points reduces investment risks. And it increases your chances of attracting the investor you need. And do not forget that, in addition to the investment, you have a partner whose opinion must be taken into account. But that’s another topic.
Share your opinions, case studies, and tips in the comments.

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