How Do You Know You Have Chosen The Right Investor?

< p > when you are investing a large part of the ownership of a company in exchange for an investment, how do you know you have chosen the right a href= "http://www.91se91.com/news/index_c.asp" > investor < /a >? < /p >

< p > although raising money basically looks like a process that needs to win investors, it is actually a two-way choice.

Investors' money to invest does not mean that he or the company is suitable for your company and can bring additional value.

When they choose to invest in your business, you are also choosing investors, and are likely to choose partners who need to work together for many years.

< /p >

< p > in addition to some basic background checks, there are 5 problems that entrepreneurs should or must bring to your potential investors.

< /p >

< p > < strong > 1. what kind of additional value can the investor bring? < /strong > /p >

< p > to be honest, though it sounds ridiculous, I have seen investors who know nothing about their investment projects and have happened more than once.

Entrepreneurs need to think seriously about what else you need to get from investors besides capital.

What you need is a person who can fully understand how to build an enterprise from scratch. Is it a person who knows the way of financing and has enough experience to guide you? Or is he a person with rich experience in a certain field, such as sales, marketing or product development? < /p >

< p > choosing investors to a certain extent is different from marriage, because this person will integrate into your life and fight alongside you for a long time in a boat.

In fact, investors will have good and general ones, so < a href= "http://www.91se91.com/news/index_s.asp" > entrepreneur "/a" must choose the right investors who are suitable for you or suitable for your company.

< /p >

< p > < strong > 2. does the investor understand your venture project? < /strong > /p >

Looking for investors is not just looking for funds. It is also very important to consider whether investors understand your business model and whether you have experience in your industry. P.

Entrepreneurs should know about the development of the investors and their areas of focus, which often reflect that the investor has broader knowledge in the industry you are engaged in.

< /p >

< p > for example, when you start a digital marketing venture, you need to see if this is the first time the investor has invested in such venture projects.

Without previous experience, the investor may not have connections with your industry or have enough power to give you the right advice or decision.

In addition to the report of venture capital companies, LinkedIn is also an important channel for you to understand potential investors.

< /p >

< p > < strong > 3. how interested are investors in the field of your venture project? < /strong > /p >

< p > just as it is essential for investors to understand your entrepreneurial project, entrepreneurs should also be aware of potential investors' interest in the type and scope of your venture.

If you have an in-depth understanding of whether he has invested in a similar project, see if your project is in a key area of his investment or the latest test, or whether he is ready to invest more in the same type of business or is already tired and ready to get away.

Entrepreneurs always need to find investors who are more interested in and willing to invest in the field of entrepreneurship.

< /p >

< p > < strong > 4. what stage is the investor in his career? < /strong > /p >

< p > most venture capitalists, if he has 15 to 25 years experience in venture capital and personal career, it will bring a great positive impact to your company.

< /p >

< p > a partner who has only a few years experience in the field of venture capital, lack of experience must be a problem. Especially if he has not had any successful investment case before, his interpersonal relationship, understanding of entrepreneurial projects, and the experience of starting a start-up company to succeed will not be enough, and the impact on your company is far from ideal. His proposals and proposals will not be in place.

< /p >

< p > try to understand the motive of his investment. If he is trying to build his own business or brand, his pace may not be exactly the same as yours. This will lead to some untimely or unexpected situations.

For example, he may want to introduce another investor or board member who looks good, but this person may not be very suitable for your company. Maybe he will put forward some very good ideas in the start-up stage, but it may not support the sustainable development of the enterprise.

< /p >

Another disadvantage is that if the investor is slowly retiring, it will weaken the impact of P in your business, and this effect will be crucial in the next round of financing or when you have a new proposal to vote.

An investor who is at the end of his career may not be able to give you any help when you work hard for the business.

< /p >

< p > when you are about to give up part of the ownership of a company, it is not only about money, but also a window for advice and help.

Make sure that the investor is in the stage of his own business, and make sure that the investment is based on the interests of the company rather than the individual needs.

< /p >

< p > strong > 5. how much money will the investor invest in your company? < /strong > /p >

< p > for your next round of a href= "http://www.91se91.com" > financing > /a > plan, ask the development of the investment company at this stage, how much money you have prepared for your company, and whether they have fully or temporarily reserved the next round of investment.

Some companies do not reserve funds until the next round of financing depends on their existing capital and other investment opportunities, while others will have hard reserves or soft allocation of future funds.

Know clearly whether the investor has made the decision to continue to invest in your company in the future, which is the best preparation for your next round of fund-raising.

< /p >