Every investor’s natural inclination is to seek a return on investment before seeking additional profit. Today, greater care is required to identify economic enterprises that offer viable investment opportunities. Therefore, investors prefer companies with a high rate of early return in order to maximize their returns. Investing in startups can be one of the lucrative business opportunities.
But what motivates investors to invest in your business?
1- Startup idea
An initial elevator pitch for a startup can be so compelling that it will convince the investor to invest (provided it is presented correctly). This idea should be presented to the right investor at the right time and place so that you have the opportunity to attract capital with significantly less rigor than other matters.
2- Fast growth
Since investors are looking for ways to generate a quick return, the rapid growth of a startup can provide them with an excellent investment opportunity.
3- Quick yield
Startups realize their efficiency faster than comparable businesses. The efficiency of the business or firm in which the investment is made is one of the most fundamental criteria for investment. Investors are often attracted to startups that have a high potential for rapid return on investment.
4- Market share and customer expansion
Earning and expanding your share of the market is a fundamental business practice. No business can survive without attracting customers. Customer acquisition and expansion are among the factors that contribute to market share growth. Many businesses and economic hubs in our country and around the world are investing in popular startups to increase their market share and customer base. Investing in startups related to publishing or producing content, stores, internet taxis, and applications with a public audience may be the best way to achieve this objective.
The formation of startups is predicated on beginning with the least expenses. As a result, a startup is formed from a minimum viable product, which entails the lowest risk, cost, and time to launch.
In many instances, the proposed values that startups add to society are more valuable than those proposed by large companies. Therefore, there is an excellent opportunity for investors to invest capital in areas with greater value.
If you make an immediate positive impression on investors and they find your pitch fascinating, then you will be the one to make the final decision.
Anyone can begin learning something, but only those born with innate talent can achieve the level of Roger Federer or Beethoven. Therefore, investors look for the same inner talent, and if they find it in an individual, they invest in his idea.
Yet, here are a few tips for attracting the investor’s interest in you and your idea:
If you wish to email an investor, avoid telling him a story. Investors typically have very little free time, so you must explain the core concept of your business immediately and in the simplest terms possible. Attempt to address these three questions in the brief text you compose:
1- What do you do, and why do you believe it is significant?
2- What is the potential size of your market?
3- Anything else you would like to say about the team, an invention or research you have conducted, a well-demonstrated working prototype, etc.