You had an ideas. You have found the gap between people's problem and the real solution, therefore you developed the startup business, because you really want to transform your idea into profitable company.
With less capital which you got from your parents and relatives, you started the business.
As time goes by, your start-up company's funds needs raising. Raising funds means you need to get people to invest in your startup business.
The question is how to capture the attention of the investor?
The question above is a quite simple question, but the answer is not easy to implement. Because there are a lot of strategy to capture the attention of the investors, so I will share you one of the strategies.
One of the strategy is increasing the traction. The next question is how to increase the startup's traction?
Ways to increase your startup traction
Traction is one of the factors that investors observe to evaluate the company, whether it is worthy of being funded or not.
For knowing how to increase the traction, I will show you the examples of startup's traction.
The examples are below:
– supply-demand data
– sales
– purchase orders
– letter of Intent,
– contracts
– awards
– sponsorships
– team hires
– the commitment of time, money, interest, resources into what you are running.
– market potential/market size/market opportunity
– business model
– revenues
– user growth
– number of existing users
– number of leads
-business partnerships
– business progress
– number of testers
– number of subscribers,
– events
– unique visitors,
– apps download
– etc.
You have to collect above data, complete and transparent data. Convert the data to the graph or chart view to make the investors easy to observe your start-up condition.
The essence of these data are to prove that customers will utilize your services or buy your product, and to demonstrate that the market is already engaging with your product.
Summary
To capture the attention of the investor :
– increase traction
– have a thoughtful plan for use of funds, display these plans in detail and graph form (infographic)
– inform comprehensive information about the founding team (background, experiences, awards, achievements, accomplishment, etc)
– inform about existing investor (if needed).
Related article:
Marketing your startup business
