Finance & Operations

3 Ways Founders & CEOs Can Make Their Companies Appealing to Investors

August 30, 2012

For companies actively interested in raising funding there are three things that can make them a target of investors.

Assuming they’ve weighed their options, considered the best reasons t0 (and not to) raise funding, and come to the conclusion that it could provide a crucial step towards their company’s success and growth, founders and CEOs should turn their attention to making their company as appealing to investors as possible. How should they go about it? In this short video OpenView Associate Ricky Pelletier suggests they focus on three things in order to start turning VC heads.

  1. Make sure your product or solution attacks a pain point that many people are struggling with. Nothing gets investors more excited than a large, addressable market opportunity.
  2. Surround yourself with quality people. A talented team allows founders and CEOs to let up on the reigns, focus on what they do particularly well, and allow others to do the same.
  3. Make sure you have a functional economic model that doesn’t break at scale. This means, “you’re improving gross margins, you’re comfortable with the nature of the revenue,” Pelletier says. You’re also asking yourself questions such as, “How are you going about acquiring customers? Is that an efficient use of capital?” Having a refined and optimed economic model will go a long way toward getting investors excited about partnering with your company.

 

Ricky Pelletier

Partner

<strong>Ricky Pelletier</strong> focuses on identifying and analyzing various market and investment opportunities. As a Partner, he works with other members of the OpenView investment team to structure and conduct diligence on new investments.