Recently, the all tech world has taken part in Web Summit 2020, as Forbes has said it’s “the best technology conference on the planet” that gives insights about current trends and global agenda. Among the invited startups there was Overgear, a worldwide gaming platform aiming to help people enjoy the game to the full.
Being interested in the topic of funding they have decided to prepare a list of tips that will help you to prepare your startup for the next investment year.
This year became a true rollercoaster for everyone. Startups aren’t an exception. As we approach the end of the year, it’s the right time to assess what has been achieved and plan new breakthroughs or maybe a complete pivot for next year.
Here, let’s analyse whether your startup is ready for investments or you have some areas for improvement.
First of all, is your idea valid?
No trust, only proofs. You need to have a proof of concept validating the commercial viability of the idea to convince investors. It shouldn’t be necessarily the final version of your product but, at least, some kind of MVP should be demonstrated. So, a valid MVP raises the level of trust in you. Elaborated strategy and unite economic work here as well.
Team means a lot.
To do great things you need to have a strong and well-balanced team. Check out whether within the team you have the necessary mix of expertise to create the product or service you want. People trust people. You can change ideas, completely pivot and it will be ok if you have a dream team. But remember that investors look for consistency, your unexpected change can be considered as a warning for them that loses the deal.
Do you know your customers one hundred percent?
Have you examined people’s needs? Your plans, executions need to be based on updated feedback data. You should have an understanding that people are willing to use and pay for your product. It’s a mistake to believe that if you create a product, others certainly will pay for it.
Don’t forget about market size. Investors are not interested in funding a product with a tiny market of available customers.
Summing up, you need an excellent team, MVP, initial customers, strategy. If you’re at the early stage and lack hard metrics, you should make investors believe in the potential of your startup.
One more key factor for investors is the market. You can regard this point as an aspect of luck or environmental forces. But you need to be in the right place at the right time. You need to be in a market that investors are interested in.
In general, now the VC community is currently re-focusing on solving problems directly related to the crisis.
Making a prediction, Nasdaq states that in 2021 focus will be on industries that find a solution for the problems brought on by COVID-19. The list of such industries includes healthcare, remote work, logistics, productivity.
Such domains as mental health and entertainment are also paid attention to. Staying at home people face a new reality and new obstacles to overcome which they need help.
In addition, cybersecurity and personal data management are supposed to become one of the hottest sectors next year, as more people embrace virtual living and this aspect of our lives needs to be secured.
Digitalisation will offer tremendous opportunities and affect nearly every industry sector. Due to the new remote nature of work the lines will blur between the most in-demand new sectors.
To sum up, to win investments for next year you’d better pay attention to your startup’s areas of improvement in order to demonstrate solid background and make investors believe in your potential. Taking into consideration the situation in the world, the best strategy is to offer solutions for the current problem brought on by COVID-19.