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6 Reasons why investors are overlooking your startup

Want to know why investors are not investing in your startup? Read the reasons below.
BY Akshay Arora
Feature Writer, BusinessEx
Mar 28,2018

Investors are always on the lookout for potential startup opportunities for investment as the growth rate is high. But still, a lot of entrepreneurs are unable to find the investors for their startup. There are myriad reasons that help the investor in making the right investing decision. So if you know what an investor seeks then there is a possibility that you raise funds. The reasons why the investors are overlooking your startup are stated below:

Idea

There are a lot of startups that launch every year with different ideas but only a few are able to find the success that they are looking for. The reason behind that is, an investor only makes an investment in an idea which is satisfying a particular need. Investors are limited but the opportunities are so many, so they will make the investment decision by checking whether your startup stands out from others or not. So you need to check first whether your idea is worth investing or not.

Entrepreneur

An entrepreneur is the biggest reason that can change the decision of investor. Knowing what your product does and whether it solves a problem of the society is not only the factor that decides whether your business will grow or not. If you are able to present the product in front of an investor in a way that he/she understands the importance of it, then only there is a chance that you get investment. Entrepreneur capability, skills, determination, and confidence is something that investor consider while making the investment decision.

Plan

A plan is something that defines where the startup will be after a few years down the road. The plan is a detailed description of what a startup plans to achieve and how to achieve. If the investor believes that the plan is achievable when there is a high probability to raise finance.

Team

Most of the startups have freshers as employees which could be an advantage if the employees grasp what they have to do otherwise its a disadvantage. Investors always seek whether the team is capable enough to carry out the given task or not. Besides idea and entrepreneurial skills, the team also plays the important part as they are the actual executioners of the plan. The future of the startup is dependent on the team so it is important that they are effective and efficient at what they do.

Risk

The risk is involved in all the investments but an investor always scouts for an opportunity where there are high chances of good returns and less risk. If your competitor is providing that kind of opportunity then why will investor invest in your startup? There is only one way to resolve this, i.e. by analysing the market and create a plan which will help in overcoming all the barriers.

Technology

Technology plays an important role in boosting the startup growth. New startups are launching with the latest technology so they are more preferred by investors. If you are catering in an industry where a lot of startups have better technology then why will investors invest in your business? It is essential now to have the up-to-date technology to stay in the competition.

Conclusion

You will find myriad ways why investors ignore an investment opportunity but that doesnt mean that it is impossible to do that. If an entrepreneur knows what to do and what not to do in a business then raising funds is not that big of a deal. If you are seeking for investors then BusinessEx is a platform where you can find investors for your business. This is the best and the easiest way. Register now to know more.

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