Thomas Szmidel | StartupSmart
I get a lot of people asking me when the right time is to reach out and pop the question. Will you invest in me? This question has a complex answer and founders need to study a few key indicators when answering it.
This is an obvious one but it’s often overlooked.
There are many times when founders pop the question, albeit with bravado, way too early.
You need to be able to demonstrate significant traction relevant to the sort of investor you’re targeting.
For friends, family and the like you may need little more than an app prototype, some early stage email signups and drive.
But for smart money like proper angels, venture capitalists, and private equity investors you’re going to need to be able to demonstrate a whole lot more traction.
They are looking for things like paying customers, large growth numbers and intelligent financial management.
The key is to investigate what the investor looks for and make sure you cater to their needs before popping the question.
I’ve written about this one before and I believe it to be very relevant.
If you ask for money you’ll get advice and if you ask for advice you’ll get money.
Very few people succeed by asking for money off a cold pitch, not unless you’ve got some Facebook-like growth.