Saturday, March 16, 2019
3 Essentials to Funding
1. Not Just Big – Scalable
Your idea must have the potential to grow big in order to get Investors interested. They need a minimum of a 10x return to break even on their overall investments. Even then, they are looking for promises of more because they know how often even 10x projections fall short.
2. Traction: Some Proof of Acceptance – Patent/Likely Acquirer
Your idea might be brilliant but if no one wants it you don’t have a business. Find a way to show that customers of some kind somewhere want it. Otherwise you are relying on the judgment of Investors and they are not likely to trust their judgment unless you can show them there is a line of willing takers somewhere. Patents that are likely to interest partners or protection against competitors, help too!
3. Execution: A Team That Can Make it Happen and a Comprehensive Plan
Ideas don’t come alive on their own. Either you are uniquely qualified or you can attract a team to make our plan work. Ultimately, the Investors are likely to choose doers over thinkers. Ideas don’t get funded but people with ideas do. If you can show that you know how to get things done and get a competent team to follow you, even a mediocre idea can get funded