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:
- 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.
- 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.
- 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.
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.