Two things that matter the most to early stage investors
If your goal is to secure an early stage funding round, your startup idea hardly matters. Well, maybe that’s not entirely true, but what you envision your startup doing matters with respect to how it relates to two the things that early stage investors care much more about: the founding team and the market.
Seed investors are looking to make money by investing in early stage, usually unproven, businesses. They are open to high risk and long timelines when considering investments, but they need a number of those investments to pay out. When deciding whether to invest, they have very little to rely on besides things they can confirm, and two things they can validate quickly are if the people building a business are competent and capable of building a business, and if the market this business is addressing is high potential.
The Team
Why is the team so important when you’re looking for money early on? Your startup concept will change over time. Part of the process of launching and building a business is identifying and validating if the idea you have is something that will actually work, and if there is a market need. What you think you’re building a business for may not be the business you end up with, or you’ll discover a new opportunity along the way that makes more sense to pursue. (Consider…
