If you want to raise some investor money to build traction for your startup. That’s a good decision, but there are some factors to consider before you go looking for investors.
1. Have An Impressive Story
You should have a great story regarding how your startup came to be and the problem that you are seeking to solve. A beautiful example is the story of the founding of Dropbox. Drew Houston founded Dropbox after realizing he forgot to carry his memory stick while traveling from Boston to New York City and could, therefore, not work on his computer during the journey.
2. Have A Minimum Viable Product
The MVP is a first working version of your product with limited features, and which you can show to customers and investors and therefore collect feedback.
3. Have Users or Customers
Investors rarely put in money for untested solutions. You, therefore, need to demonstrate that there are people who want to use your product to solve the problem that you are seeking to resolve and actually pay you for the solution. Investor money shall, therefore, help you to grow.
4. Have a Focus on profitability
For startups in the Midwest, one key thing to note is that you should show a focus on profitability the earliest as possible. This situation is unlike in the coasts where plenty of investors are willing to hold out longer before a business becomes profitable.
Checking the above four items on this fundraising checklist will help ensure that you will be on your way to raising the required capital from an ideal investor to scale your company.