6 Things VC Investors are Looking for in a Business


Having limited financial resources is one thing that hinders many people from starting a business. Luckily, you will find plenty of potential investors, such as Clean Venture, specifically if you are in the laundry industry. You can rely on the assistance of venture capitalists, but make sure that you know what makes a business attractive to them, including the things that are mentioned below.

  • A Competent Team

There are many things that venture capitalists are looking for, but one that weighs the most is your human resources. This makes it crucial to build a competent team. You need to have people with the knowledge and skills relevant to your industry. This makes it easier to convince the investors that your business is worth their money.

  • Innovation

How is your business different from all others? This is one of the most important questions you need to answer. Venture capitalists want something that stands out from the competition. If you are offering something similar to the other players, it will be hard to make a compelling case. The more innovative you are, the easier it is to raise the fund you need.

  • Solid Business Plan

When making a pitch to venture capitalists, you need a robust document that outlines your strategies. This is a concrete manifestation of what you are going to do to take your business above the competition. They will decide depending on what you identify in the plan. If it isn’t well-thought, then it will be difficult to convince them that you deserve their money.

  • Potential Risks

The more vulnerable your business is to risks, the more difficult it is to convince venture capitalists. From regulatory to product liability, you need to identify the risks that can confront your business. More importantly, you should find the best ways to mitigate these risks to increase investor confidence.

  • Growth Potential

When pitching a business to potential funders, you should emphasize your growth potential. You need a realistic forecast of your business performance, especially from a financial standpoint. The more potential your business has, the easier it is to attract investors. You need to conduct a thorough feasibility study to promote your business.

  • Effective Business Model

To convince investors to sign a check, you need to have the right business model. Present an attractive business model and make sure to demonstrate its potential. Convince the investors that such a model will help you overtake the other players. Your business model must suit your target market, competitive landscape, and business goals, among other things. The lack of an attractive model will make investors hesitant.

In sum, attracting venture capitalists can be a difficult undertaking. Take note of our recommendations above, including having a competent team, being innovative, presenting a robust marketing plan, and having an attractive business model, among other things.

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