Criteria for evaluating startup ideas by investors
Ideas can overtake us everywhere if we are creative individuals, know what we want and persistently move towards our goal. However, in the flow of generation, it is very important to focus on the idea that can become an innovation. For this, family, friends, like-minded people, and colleagues play a very important role. After all, it is the people of this environment who become the first listeners and the first target audience of the future innovator.
As a rule, this is a stream of emotions giving out one idea after another that are united by one object. In this process, it is important to get answers to the questions: what is the uniqueness of the idea, what is the tangible innovation? what are the advantages over competitors? what problems does it solve? Answers to these questions help identify the key idea and create a startup concept.
I would like to immediately note that the startup-idea stage, in general, like all subsequent stages of a startup, is hard and painstaking work and a whole list of important tasks, in order to resolve which it is necessary to make only the right decisions.
Ideas can overtake us everywhere if we are creative individuals, know what we want and persistently move towards our goal. However, in the flow of generation, it is very important to focus on the idea that can become an innovation. For this, family, friends, like-minded people, and colleagues play a very important role. After all, it is the people of this environment who become the first listeners and the first target audience of the future innovator.
As a rule, this is a stream of emotions giving out one idea after another that are united by one object. In this process, it is important to get answers to the questions: what is the uniqueness of the idea, what is the tangible innovation? what are the advantages over competitors? what problems does it solve? Answers to these questions help identify the key idea and create a startup concept.
I would like to immediately note that the startup-idea stage, in general, like all subsequent stages of a startup, is hard and painstaking work and a whole list of important tasks, in order to resolve which it is necessary to make only the right decisions.
Startup Concept
The startup concept will allow you to choose the right directions for finding a business model for the project as a whole, which helps attract venture capital investment for the development of the startup. Decide on the selection of a team to work on the startup, of course, at this stage, some tasks can be performed independently or using the services of specialized freelancers, but for the development of the project in the future, a well-coordinated, well-motivated, professional team is needed, the formation of which should be understood by the innovator at the stage startup idea.
For an investor, financing a startup idea is the most exciting because it does not yet require large investments, but can lay the foundation for serious and long-term cooperation. Preference is given to unique, new start-up ideas that may be pioneers in a particular business sector. According to the above criteria, it is possible to receive investment in creating prototypes of a startup project, a prototype, conducting marketing and social research to draw conclusions about the success and necessity of the proposed startup idea. The investment amount ranges from 2000-10000 USD and is not particularly risky as at the “start-up project” or “start-up foundation” stage.
The startup concept will allow you to choose the right directions for finding a business model for the project as a whole, which helps attract venture capital investment for the development of the startup. Decide on the selection of a team to work on the startup, of course, at this stage, some tasks can be performed independently or using the services of specialized freelancers, but for the development of the project in the future, a well-coordinated, well-motivated, professional team is needed, the formation of which should be understood by the innovator at the stage startup idea.
For an investor, financing a startup idea is the most exciting because it does not yet require large investments, but can lay the foundation for serious and long-term cooperation. Preference is given to unique, new start-up ideas that may be pioneers in a particular business sector. According to the above criteria, it is possible to receive investment in creating prototypes of a startup project, a prototype, conducting marketing and social research to draw conclusions about the success and necessity of the proposed startup idea. The investment amount ranges from 2000-10000 USD and is not particularly risky as at the “start-up project” or “start-up foundation” stage.
Investments at the “start-up idea” stage
To make a decision on investment at the “startup-idea” stage, the investor also evaluates the personality of the innovator. Preference is given to innovators who have already achieved success in implemented and ongoing projects. It is very important that the innovator can demonstrate his leadership qualities and possess such character traits as:
- passion, high ambitions, the desire to prove to himself and others that he is capable of doing what others cannot;
- passion, creativity, charisma, ability to think outside the box;
- the ability to captivate others with your idea, perseverance;
- professionalism, high learning ability, ability to adapt to rapidly changing circumstances.
If you have the above character traits, an investor can turn a blind eye to the lack of implemented projects, since more often than not innovators are young people aged 20-30 who simply have not yet had time to prove themselves in life.
Do not forget that the development period of a startup is very short (6-12 months) and if there are positive results, you can receive investment at the stage of a startup idea today if you meet all the above criteria.
To make a decision on investment at the “startup-idea” stage, the investor also evaluates the personality of the innovator. Preference is given to innovators who have already achieved success in implemented and ongoing projects. It is very important that the innovator can demonstrate his leadership qualities and possess such character traits as:
- passion, high ambitions, the desire to prove to himself and others that he is capable of doing what others cannot;
- passion, creativity, charisma, ability to think outside the box;
- the ability to captivate others with your idea, perseverance;
- professionalism, high learning ability, ability to adapt to rapidly changing circumstances.
If you have the above character traits, an investor can turn a blind eye to the lack of implemented projects, since more often than not innovators are young people aged 20-30 who simply have not yet had time to prove themselves in life.
Do not forget that the development period of a startup is very short (6-12 months) and if there are positive results, you can receive investment at the stage of a startup idea today if you meet all the above criteria.
Motivation
At the end of the article, some motivational statistics:
Edison made 10,000 failed attempts before he invented the light bulb. To found Disneyland, Walt Disney had to listen to 303 refusals from various banks before he achieved what he wanted. J. Canfield and Mark W. Hansen's Chicken Soup for the Soul was rejected by 134 publishers before it became a global bestseller. Do you sense a pattern? If you want to achieve what you want, be persistent and don't give up!
At the end of the article, some motivational statistics:
Edison made 10,000 failed attempts before he invented the light bulb. To found Disneyland, Walt Disney had to listen to 303 refusals from various banks before he achieved what he wanted. J. Canfield and Mark W. Hansen's Chicken Soup for the Soul was rejected by 134 publishers before it became a global bestseller. Do you sense a pattern? If you want to achieve what you want, be persistent and don't give up!