Startup Funding Espresso – Key Factors Investors Use To Evaluate a Startup

Key Factors Investors Use To Evaluate a Startup

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investors review the startup founder’s pitch to determine if it's worth pursuing or not.

Most startup pitches follow the same model of problem, solution, and how it works.

The team, traction, competitive advantage, and business model follow.

The pitch closes with the financial forecast, the investment ask, and the exit strategy.

The team and their track record on launching and exiting startups are the most important factors.

If your team has experience with startup launch and exit, then make that known up front.

Other factors of lesser importance include the following:

The business model.  

If you have a recurring revenue business model, then that will positively impact the investors' consideration.

The size of the market and its growth rate are interesting.

The target market has some impact, as some industries are known to be quite profitable, such as healthcare.  

The lowest consideration goes to the financial forecast, exit strategy, and investment ask.

These are envisioned numbers and will most likely change over time. 

In building your pitch deck, consider these factors and their level of importance to the investor.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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