Here's What Investors Want to Hear from an EntrepreneurTo get that cheque, it is important for start-ups to emphasize on their dream, rather than focusing on the need for money

ByBhavya Kaushal

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While the idea of becoming a part of the start-up ecosystem is alluring, as is the fame attached in case it clicks, the reality is that the path is perhaps not for the faint-hearted. One of the most difficult parts is raising funds from investors, and convincing them is not easy. Here are some of traits that an investor looks for in an entrepreneur before writing a cheque.

Discuss Your Passion, Not the Money

Sitting across the table, an entrepreneur wonders how she should begin the "pitch'. Speaking at Franchise India's StartUp Summit 2019, founder and managing partner of Rockstud Capital Abhishek Agarwal, said, "Entrepreneurs should not discuss money but the passion they hold for their company." According to him, entrepreneurs should know that their priority must be consumers and not funds. "If you are able to sell your dream and know how to get customers, funders will come to you," he added.

Keeping Fundamentals Strong

Entrepreneurs wonder what an investor looks for or evaluates while scanning the term sheet of any company. Well, the answer is strong fundamentals. Vikas Sarda, chief financial officer of Unitus Capital, said, "If the fundamentals of a company are strong then it is easier for an investor to show interest in the entrepreneur as well as his business model."

Finding a Gap

Entrepreneurship is all about finding a gap and bring in an innovation to bridge that gap. "Funders are ready to put money if a start-up has identified a gap and has a plan to fill it," says Sachin Jaiswal, CEO and co-founder of Niki.ai. Another way to understand this is to look at the market winners in the foodtech and transport tech space.

出租车聚合器超级Ola和食品技术独角兽Zomato and Swiggy understood that need and are thriving today by offering "convenience'.

Not a Fancy Email

一个企狗万官方业家不need to write a fancy email in order to get the attention of an investor. In fact, investors always have paucity of time and therefore catching the attention of the investor in the first two lines of the email could prove to be a winner for an entrepreneur, said Dhanu Das, founder of Alpha Capital.

Das also added that timing of the start-up is very important apart from the idea.

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Bhavya Kaushal

Former Features Writer

I am a work-in-progress writer and human being. An English graduate from Delhi University, writing is my passion and currently, I was Entrepreneur India's start-up reporter. I love covering start-ups and weaving their stories into unforgettable tales with the power of ink!

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