Here’s Why Startup Investors Aren’t Investing in Your Startup

We know it can be discouraging when startup investors turn down your business plan and choose to invest in other startups. However, instead of getting disappointed due to it, try to find and work on the issues that may have led to such a lackluster response from your potential investors.

Kartikeya Sharma of India News has some great tips for how to approach the failure to raise capital for your startup.

Issues with Your Business Plan

Your business idea may be great, but it isn’t enough. Even a great idea needs to be backed by a solid business plan to appeal to potential investors.

With that said, here’s what your business plan may be lacking:

  • Realistic estimates about your potential revenues and other important numbers
  • Lack of adequate research of your market
  • Lack of information about your potential customers
  • Not being clear enough about the product or service and how it’s going to be different from the others
  • Not enough information or a poor marketing strategy to attract customers

No Investment from the Owner

Many times, startup investors are also hesitant to invest in a business where the owner or founder of the business isn’t willing to invest much himself/herself. This is because it shows the lack of confidence of the owner, which also makes the potential investors suspicious about the chances of any real success of the startup.

No Relevant Skills or Record

While a good business idea may help arouse the interest of potential investors, you will have to have something more reliable to show to take it forward.

And this is usually in the form of relevant skills or a career record that makes the investors feel that you will be an ideal person to lead the business.

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