Here's the investor's checklist on what it means to be “fundable”. Knowing where you stand on these 6 aspects should be the beginning of your fundraising preparation. *Especially valid for early-stage. ✅ You have a killer team ↳ Ambitious. Well oiled. Covering the main roles ❓ Investors want to know that you are best for the job of making this company a success. ✅ You are solving a real problem ↳ Serious pain for many people/businesses ❓ Investors want to know that customers are ready to pay to have this problem solved. ✅ Or capturing a hot opportunity ↳ It might be building on a trend/technology/need ❓ If you are not solving a problem, investors want to see a really hot opportunity which you can capture. ✅ You are in a big, ripe market ↳ Big pool of customers. Paying to solve this problem ❓ Investors want to see a big market in which the company can grow into and get to good revenue. ✅ You have a clean cap-table ↳ Healthy equity distribution with no surprises ❓ Investors want every shareholder to have the right incentives for the long term interest of the startup. ✅ You have good traction ↳ Gaining new users/customers at a steady rate ❓ Investors want to see that you can execute, deliver results for your customers and get more of them. All of the points above matter to investors. Because they want to maximize their returns. More importantly, these points should matter to you. Because they are a foundation of a good business. Think of these when you start f̶u̶n̶d̶r̶a̶i̶s̶i̶n̶g̶ a startup. 😉 P.S. Is there anything you'd add as a healthy foundation of a company? Share with me in a comment below. ⬇️
You have shared literally the checklist that every early stage startup should cover if it wants to fundraise. 🙏
Great checklist!!💡I also love the idea of capturing a hot opportunity, these days I see so many product that are not solving a specific problem, but there is this huge hype around them. It will be interesting if you explain their model also!
Nikola, very well put, agree with every point!!!
Thanks for such a great & clear checklist! 🙌
I think these aspects are definitely in line to what I see from discussions with VC GPs and LPs. Team is always on the top of the checklist, followed closely by the unique value proposition and traction.
Ask me about the "Start Up, Bulgaria!" event 🚀 Revenue Growth Strategist 📈 | Entrepreneurship lecturer / speaker 🧑🏫 | Co-Founder & CMO of Unboxd | 1st AUBG Elevate Accelerator Winner (‘22) 🏆
8moLudovico Sarno, follow Nikola Yanev and you will get the information you need regarding fundraising, startups, validation, PMF, and any other topic that’s important for a founder 🔥🚀 P.S. It would be great if you can engage with the posts as well. Because Nick shares so many insights from his professional background and expertise. 🙌 Enjoy!