Here are three things investors look for when deciding when to fund startups:
1. Team and Product Validation with Traction
A few things that get investors really excited about an early stage startup is when the team can show that they have real customers or a real working product traction. Investors really like knowing that the team knows what they are doing and that they can build something. Show real, actionable progress when meeting with investors and you are bound to leave an impression.
2. Show Growth, Opportunity, and Passion But Don't Oversell It.
When the entrepreneur can communicate a vision to customers and investors, you're going to be a lot more successful. Talk about big opportunity with a lot of passion and investors will move towards that. Be careful not to oversell that passion though! It's too easy when building a startup to be overly enthusiastic about something that you created and really believe in and the temptation to desperately oversell your product in the hopes of getting more money is high. However, investors have been in the business for many years. Focus on your strengths and remain candid when pitching your company; investors will appreciate that.
3. Stay Intimate
The best way to get the most traction with an investor is to stay intimate and send one or two high-level members of your team to the meeting. This will show investors that you care about their input on a personal level and will make them more likely to be enthusiastic about your company.