What Investors Are Looking For
4Startups can be pretty shy about discussing their current revenue when they are in the early stages of the business. This is typically because, in the beginning, the revenue is not a large sum.
One of the most important things to understand as an early stage startup is this:
The investor doesn’t care about the size of revenue.
What they docare about is the predictability of that revenue.
Investors look for systems in startups regardless of the size of the company.
As a startup, ask yourself:
- Do you have a process for finding customers?
- Does that process introduce them to your product?
- Does that process also include closing?
If you have a sales funnel, it’s helpful to share that with the investors. This is key because the investor can then see the traction you have in your sales prospecting process. Use the funnel in multiple investor updates to show how prospects are moving through it.