Finding the right investor is never easy so We hope you have enjoyed our second Oddup Tips series.
1. Good Investment Track Record
The right investor needs to have a good investment track record. You might want to look at the investor’s investment history and ask questions like:
– How many startups has he invested in?
– What is the percentage of his startups have successfully exited or closed?
2. Solid Financial Status
The right investor needs to be financially stable to have enough assets to cover current or short-term liabilities. Most of the high-net-worth investors are willing to support quality startups with millions of dollars. Funding is important for a startup business, it is like a fuel to a car. Without funding, you will struggle with the weight of debts.
3. Similar Mindset and Vision
The right investor needs to have a similar mindset and share same vision with you, in order to make ideas happen smoothly and effectively. People who shared similar beliefs tend to have stronger relationships than others and they are more likely to achieve their common goals.
4. Driven Heart to See You Succeed
Finding the right investor who has a driven heart to see you succeed is important. It is probably like having a supportive family member to work together to overcome obstacles.
5. Trust and Respect
Trust and respect are essential for the founder and investor relationship as you wouldn’t want to be second-guessed on every action.
6. Strong Work Ethic
An investor with a strong work ethic is vital for a company to achieve its goals. Everyone in the company must have a good work ethic to ensure the company functions in an effective way. Here are the factors that demonstrate a strong work ethic: integrity, responsibility, discipline, teamwork, and proper communication.
7. Passionate about Ideas
The right investor needs to be passionate about what you are building and what problem you are trying to solve. Passion drives motivation and there is no doubt that you will be more passionate about your own startup than others. Passion equals drive, try your best to seek for an investor as passionate as you are to drive business success together.
8. Strong Network
An investor with a strong network can help your startup become more visible to the right people. Business Networking is a valuable way to expand your knowledge and learn from the success of others while attaining new clients.
9. Strong Industry Knowledge
An investor with strong industry knowledge can help you accomplish more than you ever imagine. He can provide hands-on knowledge, experience and expertise that guides you on business ideas and helps you solve problems. With valuable lessons from their experience, you are able to make better business decisions.
10. Strong Mentor
Mentorship plays an important role in terms of personal and professional growth. A strong mentor can help you grow as he or she would provide you with direct and constructive feedback. Many successful entrepreneurs have a close relationship with their mentors. For example, people often ask why Facebook founder, Zuckerberg, has the wisdom of someone 20 years older and the answer is, he sought out really good mentors – Bill Gates and Marc Andreessen.