We had with us Mr. Abhijeet Kumar, Co-founder & Investor, ah! Ventures. For those of you who don’t know about it, ah! Ventures is a growth catalyst that brings together promising businesses and investors by creating wealth creation opportunities for both.
Abhijeet gave some great tips that entrepreneurs should keep in mind while looking for funding. So in this blog I thought about sharing what I’ve understood & learnt from him as well some other investors at our previous Investor meetups. Hope this helps !! :)
The investor-entrepreneur relationship is like a marriage, one where you get married to get divorced. So in this case, always make sure you marry someone you can easily get divorced with !!
- You cannot use the investors money to run your business & pay salaries — If you do so, then there is something wrong with your business model. Suppose you are expanding from 1 city to say 5 cities — Thats when you need a marketing budget and the investors money will help you there
If you’re generating money from your clients, then raising funds is not necessary. Just figure out how you can sustain
2. Teach the investors something they don’t know — When an investor walks out of a room and knows more than what he knew when he came in, it means you have really done something great.
3. Constantly adapt and maintain your speed or you’ll die — You should be able to push the envelope and develop new products, services, and methodologies that advance beyond the competition.
4. If you can’t grab the investor’s attention in 5 mins then you’ve lost it….Explain what the problem is — How big it is — and how you’re going to solve it. Always focus on your strong points. Make your story around them.
5. Don’t be entirely dependent on your investors and mentors — Investors are people with extra money looking to earn more by investing. Suppose tomorrow an investor decides to back out, it shouldn’t be that your business can’t run anymore.
6. Try and make your idea/solution stand out. It should be something only you can build — There should be something unique about it so that an investor doesn’t have to think twice about “what if someone else is doing the same thing”
If this was helpful, please do hit the ❤ button :)