100 entrepreneurs went into a room to pitch for funding. 80 of them walked out rejected. That means only 20 applications were being considered. Out of these 20, there would be another selection to choose between 1 to 3 companies that deserved funding.
Here are a couple of things that investors will consider before putting their money with the entrepreneurs:-
- The legal structure of the company – is this a sole proprietor or a limited partnership or a private limited company?
- The “Guys Running the Show” – who are they and what makes them qualified and capable to run the show?
- The “Startup Capital” for business – how much have the founders invested to launch this business for take off?
These are the BASICS to pass the Screening Test. If you don’t have a ready vehicle that can accommodate many people, different people at different stages of the business, investors will not want to spend another minute telling you what you should do.
They EXPECT that you already know.
From the desk of,
Cynthia Chiam