An investable strategy focuses on the allocation of capital resources towards a business goal. It has been around for a while and is effective in mitigating risk and guiding capital into worthy projects. Making your startup investable is critical to its success since today's startup ecosystem is a lot different than the one seen a few years ago. Potential investors are more cautious about giving their money to unproven startups with little-known founders and untested ideas. At the same time, this means that you have to work harder and prove your potential in the best way possible to convince them of your company's potential before they hand over their cash. It is crucial to understand some factors which determine whether or not your new business has what it takes to get off the ground as well as tips on how you can increase your likelihood of getting funded in a brutal market like this one.
Companies that are immune to changes in the technology world are more likely to be investable than those which have invested heavily in technology over the last few decades. Citigroup, for instance, has been investable for almost every sector it has entered and exited consistently over the past few decades. So when we talk about 'investable', we're really talking about being 'stable' here — meaning they have been able to weather many ups and downs throughout their history and continue doing so today without experiencing any significant downturns or headwinds in future earnings forecasts. Let's consider few questions or facts that will help you ponder this topic:
Does your startup have a solid product and user base?
Your startup needs to have a solid product and a strong user base. This way, you can show potential investors that your product's in demand even before its official launch. Once you've established that you have a viable product that can generate revenue, the rest of the process will become easier. After all, investors will be more interested in funding a company that shows potential for growth. Ideally, you'd have a working product that has the capacity to grow as well.
Are you building trust in the market?
Educating your potential investors about your business is important in order for investors to understand your business and the potential upside, you need to do your own research and promote your company intelligently. A thorough market research will help you answer important questions about your industry, customers and competitive landscape.
IP being an internet protocol, and it's the most popular way for connection providers to list their services on the internet. Your website or blog post can be one of the first things people see when they visit your site. It's also a great way to get your message out there so people will check out your site as well. So ensure that you build trust in the market through your content, testimonials, and overall branding.
Do you have IP protection in place?
Ensuring your Intellectual Property (IP) is registered with the appropriate authorities and protected in all jurisdictions where you wish to operate is pivotal. Your IP portfolio can include patents, trademarks, designs, and copyrights. By registering your IP, you will have a better chance of enforcing your rights if someone does infringe on your IP. Also making sure you have a good system for keeping track of your IP. This includes keeping track of when it was created, who created it, and where it is being used. This information will be important if you ever need to enforce your IP rights. Becoming proactive about IP enforcement is necessary.
Have you used IP to mark your niche?
Another way to make your business more investable is to use IP to save your technology and mark your niche. If you have a unique piece of software or an innovative design, you can use a patent to protect it from being copied by your competitors. This can give you a competitive advantage and make your business more attractive to investors. By protecting the IP, a startup can automatically give protection to their business partners which has a direct impact on investors.
When it comes to making your IP investable, there are a few key things to keep in mind. Firstly, a trademark safeguards your brand thus trademarking your brand will give you legal protection and ensure that you can command a higher price for your products or services. Secondly, increasing your valuation will make your IP more attractive to potential investors. Your IP is worth more than the sum of its parts by increasing its value through licensing or other means. Another tip is to make your IP easy to sell. Potential investors will be more likely to be attracted and invest in your IP if it is easy to sell or transfer.
In order to make an impression on potential investors, you need to have a compelling product or service. Be sure to come up with a unique approach to solving a problem or filling a need that your competitors don't address. Maintaining a high level of quality and innovation will make your startup more attractive to potential investors.
How to use IP to leverage time?
Timing matters even more than the idea and execution of your business model. And the best way of assessing it is understanding whether the audience is ready for what you are willing to offer them. Wondering when to start your startup file for your intellectual property, the answer may not be as straightforward as you think. Depending on the type of IP you have, you may need to start the clock on your startup sooner than you thought. For example, if you have a patent, you need to file your in advance of when you first wish to publicly disclose your invention. This means that if you're planning to exhibit your invention at a trade show, you need to have your patent application filed before the show. Similarly, if you have a trademark, you need to use it in commerce before you can file for registration. This means that if you're not using your trademark in commerce, you may lose your prior claim or rights to it due to lack of evidence of use. Therefore, timing your business in line with IP requirements is essential and seeking help from IP professionals can save you big time.
Being an investable startup while aiming to become an unicorn is a continuous race. But with the right strategy, it's possible to get the massive funding you need and join the unicorn club. Make sure that you're prepared to present your company to potential investors, safeguarded by IP, and that you have the right factors in place for a successful funding round. Once you have it all sorted- you'd in a much better position to scale your business and make it a reality. And once you do, you'll be rarely required to prove that your startup is investable! Connect with us through LinkedIn or our website, to know more. Keep on the hustle!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.