3 Qualities Which Could Readily Get You Investors And mentors as well.
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Entrepreneurship today is not restricted to merely people turning into businessmen or joining family businesses to make extra bucks and lead lavish lives; in fact, "giving back to society" has seemingly taken precedence among today's entrepreneurs who are turning smart in a bid to develop smart solutions (by harnessing latest technology) to mitigate at least one layer of societal problems.
Now, with smartness being the criteria, entrepreneurs have lots to cheer about as there are venture capitalists ready to invest equity (and even debt) in smart models provided you establish the right connect. More often that not it is your entrepreneurial traits which catch the eye of investors.
With investor-connect as focal point, Entrepreneur India lists essential qualities which are preferred by modern-day venture capitalists who even actively mentor entrepreneurs.
Investing in the entrepreneur
The myth, of investors being really stern with entrepreneurs and imposing unrealistic conditions with respect to business models, is busted as venture capitalists (VC) today are even ready to invest based primarily on the entrepreneurial ideas and creativity.
"Our single biggest thesis in any investment is the entrepreneur," states Alok Goyal who is Partner at Stellaris Venture Capital.
Alok also adds that his fund is an anti-pattern business which means that the conventional set patterns are analyzed with unconventional approaches. In this regard, if you are looking at approaching VCs, the key should your entrepreneurial focus. This entrepreneurial spark and focus needs to be showcased at appropriate levels to establish the right connect.
"We track if there is a real entrepreneurial spike, in entrepreneurs," informs Goyal.
By spike, Goyal refers to diverse aspects ranging from the idea itself, to sales skills, and leadership. Now, this is something to cheer for as you could explore your key merits and differentiating factors even before you approach a VC. Remember that merely identification of your (business) USP is not sufficient, what matters is evaluation of these skills even before a mentor is identified.
Consolidated aspects – for investors to cheer about
It is not only that your entrepreneurial idea is always accepted; the business part also matters. VCs today look at scalability and ideas together most of the time.
"As a fund, our strategy is to scout for innovative and high potential startups that are solving real life problems using technology," informs Bhaskar Majumdar – Managing Partner at Unicorn India Ventures.
For him to mentor startups, the essentials include you describing profitable paths, scalable/commercially viable products, and clarity in vision. These aspects would potentially serve as the icing on the cake; with the cake itself being problem solving through technology.
Investments in set-causes are difficult
If you are a creative entrepreneur, you should note that not all VCs and angels today think unilaterally as far as societal problems are concerned. The money-making aspect also plays a role for investors especially if their fund is not classified as a social impact venture.
"Like other businesses, investment is also a business. We should not make this assumption about investors solving societal problems. The money-raising mandate is important," adds Revathy Ashok Co-Founder at Strategy Garage and an active angel investor.
She throws light on an important fact which is business scalability. Your ventures must have something to offer at the end of the day; otherwise it could end up as a driverless luxury car.