How startups attract VC: vision, continuous innovation, "evangelical" customers

When deciding whether to invest in a start-up, venture capitalists and angel investors tend to consider important factors that are key to making it easier for entrepreneurs to raise money. Here's a list of 5 big-wind decision elements that have been sorted out according to Pehub.com's report: Are the founding teams strong enough to have potential, decision-making and solidarity? All startups experience a variety of challenges at the beginning of their start-up, so their strengths and resilience are particularly important, which will determine whether the company can survive. Although it is important to have a star team, a team that can focus on producing better quality products is more important. Whether there is a passion for each investor will be concerned about the embodiment of the company's potential important signs. This passion and interest will attract equally passionate mentors and board members, all of which are important to the company's early development. Does the company have "evangelical" customers? In the process of introducing new products to the market, every start-up needs a group of early "pilot" who are willing to give inexperienced small companies a chance to try and be happy to spread their products after the experiment. This not only takes a lot of time in research and relationship creation, but it also requires those who voluntarily form their own advice on products and business models after the experiment. It also reflects the precise speculative and operational capabilities of these clients, and it is vital that they are willing to work with start-ups. Finally, these customers need to love the fruits of their partnership with startups and are willing to advertise their products in their own company and network. The average American will have at least 600,000 start-ups a year, and in such a competitive environment it is even more important for companies to attract a large number of such customers in the short term. Are startups unique? There are a growing number of startups pouring into the market, and the market is saturated, and in such an environment, startups with special opportunities will have the opportunity to take a leading position in their own field. These special things can be rich experience, advanced technology, high enthusiasm and so on, which is also reflected in the company's philosophy. Each team member has a passion for the company's philosophy, which is embodied in every aspect: marketing, teamwork, and even the board of directors. The passion is hard to fake, and the feedback from distributors and customers shows whether everyone in the team loves what they do. Are the early customer groups of startups able to maintain "customer stickiness" and have strong sustainability, rising purchasing power and advocacy for the company? Early adopters are always happy to try new things, so it's not difficult to attract 5~10 at first, but the real value of a company is whether those customers are "constantly updating" the service experience and are trying to buy more products. Startups must have a core customer group that is very loyal and willing to do the following things: try new products; for existing products and pricing strategiesProvide feedback, recommend new products or functions, and inform the company of the price they can accept, provide customer evaluations and other relevant content, publicize the company and attract more potential consumers. To achieve this range of goals, you can create a "customer advisory board" that periodically brings together core customers to share the company's results and future development plans. This not only creates valuable face-to-face communication but also collects more valuable opinions and ideas for later efforts. Does the company have a vision or plan to take the lead in a large market? Many startups now start by creating innovative solutions to small problems, although this may be a good way to build a larger company's initial drive to get the company's first bucket of gold, but the company also needs to have a clear positioning for future market opportunities, and has a long-term vision and plans to achieve the goal of expanding the size of the company. To attract more venture capitalists, startups need to identify not only possible future challenges but also potential big market opportunities for the future.