Different investors use different criteria to judge an investment. The importance of these factors would wary depending on the stage of investment, sector of start-up, management team, etc. Listed below are typical investment criteria used by investors:
: Refers to the addressable market which the start-up is catering to.
: Start-ups should showcase the potential upscale in the near future, a sustainable and stable business plan.
: The offering of the start-ups should be differentiated to solve a unique customer problem or to meet customer needs. Ideas or products that are patented showcase deemed potential in the start-ups.
: Laying out your customers and suppliers, helps investors understand your business better.
: A true picture of competition and other players in the market working on similar things should be highlighted. There can never be an apple to apple comparison, but highlighting the service or product offerings of similar players in the industry is important
: No matter how good your product or service may be, but if it does not find any end-use, there is no good.
he detailed business model that showcases the cash inflows over the years, investments required, key milestones, break-even point, and growth rates should be made out well.
A start-ups showcasingpotential future acquirers or alliance partners become a valuable decision parameter for the investor
: The execution and passion of the founder and the management team to drive the company are equally crucial in addition to all the factors mentioned above
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