What Investors Want
I get to interview investors from different verticals and markets around the world. Here is some insight for the Next Round members who want to raise their next round.
I want to be clear: I talk to investors for a living. My podcast, Next Round Ready, is a show where I interview startup founders who’ve raised millions for their startups. I also connect with venture capitalists/angel investors who put money into these startups. After years and hundreds of interviews, I decided to start this newsletter to share my findings. (Make sure you’re subscribed to the pod!)
Desire 1: Clear Traction
Traction shows an investor that you are already getting results. This typically means by using their money, you can get even more results. You can prove traction with a massive waitlist or a handful of paying beta users.
Desire 2: Distribution Strategy
Can you distribute your product at a high level? This matters a lot to investors these days. Some companies are getting investment with questionable products because they have a massive advantage in terms of distribution.
Before you go and hound investors, your strategy to get more customers should be clearly designed. Most investors will have this in their top three in terms of questions.
Desire 3: Timing
The timing of investment is something you have to understand as a founder. This is why research is so important. (Subscribing to this newsletter will help you be aware of the top verticals who is getting investment.) Investors love companies tied to a shift in tech, culture or regulation.