Investors don’t just look at your spreadsheet projections. They’re sizing YOU up, and trying to assess the less tangible factors that can make or break a startup. The earlier you do this honestly on yourself, the better prepared you’ll be for those tough conversations.
Questions to Ask Yourself (And Be Brutally Honest)
- The Team Factor: Do you have complementary skill sets, and a track record of working well together under pressure? Red flags include co-founders who barely know each other, or massive ego clashes.
- Founder-Market Fit: Are you genuinely passionate about the problem you’re solving? Investors can spot a mile away when someone’s chasing a trend, not a mission.
- The Grit Factor: Startups are hard. Do you have the resilience to bounce back from setbacks, or will you crumble at the first sign of difficulty?
- IP Protection: This isn’t just about patents. What’s your “secret sauce” that’s hard to copy, even if the tech itself isn’t unique?
- Can You Sell the Vision? Not just pitching investors, but attracting early customers, top talent, etc. If you can’t articulate the “why” compellingly, neither can your marketing team.
Digging Deeper: Things Investors Look For, But Won’t Say Out Loud
- Coachability: Do you listen to feedback, or get defensive? Arrogant founders, even successful ones, scare off smart money.
- Energy vs. Burnout: There’s a fine line between hustle and someone who’s unhealthy. Investors want founders who are in this for the long haul.
- Hidden Red Flags: Sloppy communication, missed deadlines, even your social media presence…these all reveal how you operate under pressure.
- Market Validation Beyond the Cheerleaders: Have you talked to potential customers who DON’T know you? Their honest feedback is more valuable than friends hyping your idea.
[tagline] Remember, due diligence is a two-way street. You should be assessing potential investors just as much as they’re assessing you.[/tagline]
