10 things investors look for in a startup -
June 11th, 2012
1.)Passionate team with domain expertise. Good management can make a success out of a bad idea. Conversely, a bad management can ruin a good idea.
2.)The market that the startup is targeting should have a large potential and should be rapidly growing.
3.) What are the barriers to entry for the competitors?
4. Does the startup have the ability to become the number 1 or 2 player in the market?
5.)Does the product have a clear value proposition for the customers?
6.)Differentiated offering. How are the startup and its product different from competitors?
7.)Is there a clear path to monetization of the idea to justify the valuation?
8.)Pipeline of potential customers/partners. Having a few early customers signed up can be very helpful.
9.)Can the startup 'scale' to large volumes and become more profitable with larger volumes?
10.)Low resistance from non-market factors - government, social organisations etc.
Source : ET power of ideas.