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Factors potential investors care about most

  • Published at 06:50 pm August 31st, 2016
Factors potential investors care about most
Companies that are in the process of purchasing a startup do not make decisions instantaneously. As a startup, you need to keep regular contact with acquirers to figure out what matters most to them. Your customer base What really matters is your customer base. Your products or services might be amazing, but if you are failing to attract your target customers to purchase them, you are losing value. If your startup is going to be acquired, your customer base is the first thing they will look into. Know that they have the ability to simply copy your business model, but if you have a strong presence in the market, it would be more lucrative from them for take you over. If you have a stable grip on your customers, your potential acquirers, investors and strategic partners won’t be able to ignore you. Hence, you need to grow and strengthen your customer relations and management. Slowly but surely, you will be able to grow your audience and give your future ideas the chance to succeed. Industry expertise and experience The next thing acquirer will look for is your team's expertise and experience. You need to have significant product knowledge and industry understanding. This will add immense value to your startup. It saves a lot of time and effort for the buyer. Existing relationship with the acquirer You cannot just expect to get into business with people who don’t know you. You need to build a long-term relation and a base of trust with your acquirer. Position yourself in a way so that investors come to you, not the other way around.