What should my startup to attract Venture Capital?












Although each firm has its focus Venture Capital, there are a number of common factors in its strategy to invest funds in a startup. To attract these investors, your startup or entrepreneurial project must meet these requirements:

1.- Macro-tendencies: The trends in the medium term should create a large enough opportunity to market need your startup covers.

2.- Competitive Advantage: Are sufficiently strong barriers to entry in the business of his startup?

3.- Founding Team: They have enough to Boating, prepared and motivated the people leading the project?

4.- Profitability: Can the project generate a return on investment of 25% hereinafter within 5 a 7 years old?

5.- Cast: Will the firm to compete venture capital with many other investors in the project?

6.- Contingencies: Is established plans to that in the case of the startup not work as expected, the least possible loss of capital may occur?

7.- Differentiation: Does your startup a truly original approach or is the umpteenth project fills a need as determined by a host of entrepreneurs?

Innovation opportunities

Firms Venture Capital seek innovative startup, but what are the main sources of business innovation? We will not reinvent the wheel to give an answer, but we turned to the teachings of Peter F. Printer, in his book "Innovation and Entrepreneurship" gives us clues: The 7 main sources of innovation are:

  • Surprise: Events or unexpected events that create an opportunity and could be the "bankruptcy" of General Motors.
  • Inconsistencies: Discrepancies between the current market performance and how it would be if diseñásemos on a blank paper. (Example: Uber)
  • Process Needs: Unmet needs that could cause a process to be more efficient (Example: Skype).
  • Structural Changes: New Players, processes or products that make the old model is obsolete (Example: Ebay).
  • Demographic changes: Changes in population structure, employment or income (Example: in Aging, Lively).
  • Changes in perception: The mindset of the general public on a product can change dramatically in a few years (Example: snuff or clean energy).
  • New knowledge: New discoveries in technologies or materials may overturn many sectors (Example: Graphene).

Does it meet your startup enough features to attract investment from a firm of venture capital?

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