Investors look at several factors before deciding to invest in a startup. These include:
1. Business Plan
A comprehensive business plan outlines the business model, market analysis, financial projections, and growth strategy. A well-prepared plan can significantly increase the chances of securing investment.
2. Market Potential
Investors assess the market potential to understand the demand for the product or service. They look for a large, growing, and addressable market that offers significant growth opportunities.
3. Team
A strong, experienced, and committed team is crucial for the success of any startup. Investors look for a team with complementary skills and a proven track record.
4. Traction
Traction refers to the progress and milestones achieved by the startup. This can include user growth, revenue, partnerships, and other indicators of business performance.