15 questions investors will ask you before investing in your cleantech start-up.
If you own a start-up or are planning to start your own business, then you are most certainly looking for investors who will provide the capital needed. Before you talk to an investor and present your pitch in front of them, it is high time you understand the psychology behind why someone would invest in your start-up. If your idea is excellent, but the outcome seems to be a little less productive, it might affect the investor’s decision. If you have a green start-up, you have a plus point as a green investment is synonymous with a significant investment indeed.
Here’s making things a little easier for those entrepreneurs who are starting their own business. We’ve listed a few questions that you need to be prepared to answer if you want to impress your investors.
- You are probably not the first person to take your idea to an investor and you are definitely not going to be the last. This is why investors will take a keen interest in not just your idea but also the people who are responsible for making it a reality.
Who is/are the founder(s) and who are the key team members?
What relevant domain experience does the team have and what makes them stand apart?
How does the team plan on executing the company’s business plan?
At present, how many employees does the company have?
What are your plans on scaling the team in the next 12 months?
- The second thing that investors look for in a business before they start investing in it is the potential that your idea has. They want to invest in a company that can scale and someday become a brand. Think Zomato, Oyo, and PayTM – all of them started with an idea and now have taken the world by a storm.
Which specific marketing channels are you using?
Are the founders passionate about the idea and determined to see it through?
What are the trends and opportunities in cleantech start-up investing?
Where on the value chain does your company’s product/solution fall?
Who do you think are your competitors in the industry in which you operate?
- Not all start-ups are overnight successes, there are hundreds if not thousands that take years to realize a profit. Investing is a long-term game, which is why it is essential to have an idea of what the timeline is so you can compare it to your own expectations. It has been observed that businesses that have obtained early traction are more likely to obtain venture financing and with better terms.
Where do you see your company’s sales and profit trending in the next 12 to 24 months?
What positive early traction has the company achieved?
What are the major product/service milestones?
What are the potential risks that you may face?
What are the key differentiating features of your offering?
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