What Do Investors Look For in A Business Venture Opportunity?

Our top 5 pointers to secure funding and make your business venture a success.

Modern investors only back one in every five hundred pitches (or even fewer) they review when it comes to new business venture capital. That’s pretty low odds: just a 1% chance of success. Getting to grips with what VCs are looking for before you enter the shark tank is how you can start to swing those odds in your favor

From planning your exit strategy to knowing your growth metrics: here are our top #5 tips for successfully securing your next investment opportunity!


#1 Show investors your business venture is different

VCs have a defined set of wants, each unique to their circumstances and portfolio. With so many founders vying for their cash, your startup has to offer something truly original or unrivaled in the market. No pressure, then.

During the pitching process, they’re looking for a clear differentiation from your competitors (your Moat) and how you’re meeting your audience’s needs and expectations – proof of concept. But, you already know all of this. The trick is making sure your would-be investors do, too. Business venture success comes down to your competitive edge. Stay sharp.

#2 Know your growth metrics

Investors will only put their hands in their pockets if they’re convinced about your growth potential and impressive ROI potential. Surprise #1! This takes more than words and a shiny slide deck, it’s about backing up your pitch with data-driven elements that prove your proposal is on the money.

This includes your plans for expansion and customer acquisition, for instance. One thing’s for sure, it’ll certainly include your timings. By that, we’re talking about how much profit you’re likely to generate within a certain period. Surprise #2! More projected (and quantifiable) profit means greater chances of success. 

You’ll find that VCs are extremely interested in your team. For your startup to take off, investors will double down on the educational qualifications and professional experience your team members possess. It’s not just you who’s on show, it’s the complete inner workings of your business venture.

#3 Have a solid financial strategy

For sure, securing investment will give your startup the substantial boost you’re looking for, but investors won’t just hand you money. Sorry, founders. Whether VC, angel, lending, or even bridge financing: whatever the means, backers want to see some kind of return and a sustainability forecast.

Knowing your numbers means preparing and delivering up-to-date plans that detail comprehensive market sizing information and customer feedback, along with an accurate cash flow projection. Time to get out the calculator and check those figures.

#4 Watch your spending

Pitching to land investment is one thing, pitching on how to use investment is a whole other ball game. Successful business venture capital deals come from carefully breaking down the dollars into initial capital requirements and any subsequent spending, like innovation, products, and staff.

How you use your investment might be a consequence of your industry—and we don’t mean it in a bad way. Strong, innovative products attract investors, who look at patents, marketing potential, and, you guessed it: your competitive edge. 

#5 Do you have an exit strategy?

This is by no means a given, as some founders won’t yet have had the time to fully think about their exit plan. That being said, an effective strategy can reassure investors and your team of the ongoing viability of your startup when the time comes for you to bow out. Investors want reassurance over business continuity and growth potential if they stick around for future funding rounds, so having an exit strategy or at least an idea will help.

Diadem Capital: supporting your business venture to secure funding

At Diadem Capital, our platform connects startup founders with unique investors and opportunities: all through data and warm introductions. Our vetted and personally approved partnerships, including over 550 capital providers—from VCs to FOs—are just a click away.

Sign up today and start fundraising differently. Fundraising has changed; join the revolution!



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