Logic of the Fundable Startup
There are at least six ways that I can construct a logic of the fundable startp that says its to your best advantage to create as much value to your company as you can in order to attract capital to a company, before talk to investors.
Build Your Team
One of the most important things you can do before you approach investors is begin to build your team. Now I know that sounds trite, “How do I build my team if I don’t have money?”, “How do I get money without the team?” well there are some answers to those questions.
How to Create Value for Investors
Let’s talk about creating value in your start up company. Startups by their very nature have almost not intrinsic value. There is no revenue or profit or asset value that you can attach a significant value to. The value lies more in the future prospects…
Venture Capitalists see the best deals. You are not only competing against other good ideas but also successful experienced management teams. If you have a great idea and an experienced CEO, go for it. Otherwise build your team, attract the best people and build as much value as you can. Reduce risk for investors and prove that you can manage the business before approaching investors.
Manage Investor Risk
One way to construct a logic for the fundable startup and the approach we are recommending which is to create as much value in your company as you can.
Where to Find Investors
Venture capital and angel money is out there! Search within your geographic area on Google. There are also some directory listings such as the National Venture Capital Association. Locally the business journals might also have some listings.