What Do Investors Look For? 3 Ways to Stand Out & Get Funded

When you’re seeking funding it pays (literally) to know what potential investors are actively looking for.

In this short video OpenView Associate Ricky Pelletier sheds light on three key elements venture capitalists love to see in an investment opportunity. What do investors look for?

The most prized targets are companies that offer:

  1. A unique solution to a large customer pain point. There are few things investors like better than a large market opportunity come a knockin’. If a company can show its product provides a one-of-a-kind solution to a widespread problem, investors will line up at the door.
  2. A balanced, quality team. It’s typically a very good sign to see “a CEO who acknowledges they’re not going to be the person to do everything,” Pellet says. Surrounding yourself with a talented group of individuals with a strong mix of domain and/or functional expertise is a fantastic way to build investor confidence in you and your company.
  3. A proven, repeatable, long-term economic model. What’s the nature of your company’s revenue? Is it recurring or one-time? Recurring creates predictability and is typically valued higher, but whichever the case, it’s important to demonstrate that your go-to-market is effective and that it will not break over time.

 

Ricky Pelletier
Ricky Pelletier
Partner

Ricky Pelletier 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.
You might also like ...
Finance & Operations
In the Transition to Usage-Based Pricing, Invest in Your Data for Greater Predictability
You know that feeling when you’re in an unfamiliar city and you get off at the wrong subway stop? I...
by Jonathan Tice
Finance & Operations
4 Traits of Fast-growing SaaS Companies
Editor's Note: This article first appeared on VentureBeat here. You can find fast-growing software companies in almost any vertical, but there are...
by Kyle Poyar
Finance & Operations
CAC Payback Basics: What It Is, How to Calculate It and Why It Matters

What is CAC Payback? How do you measure it? We break down the basics of this metric and why it’s important in your SaaS business in this article.

by Sean Fanning