We (Orion Startups) have seen in the last two years a lot of entrepreneurs looking for money, but just a few are clear about what they want to do with the money.
Right stage of investment at the right time.
X axis is investment round standard and Y axis is progress:
- Strong team, interesting market, compelling product/market hunch.
- Usage data validating Product/Market fit. Test distribution hypotheses.
- Early foothold in market, predictable path to turn investment into revenue.
- Pursuit in the capture of aggressive market in known and new channels.
Investors invest in early stage or startup companies in exchange for an equity ownership interest, and they are expecting RESULTS from those companies, most of those results are necessary to rise the next round of investment and growth goals.
After all, you cannot expect to use the investor’s money for free, can you?
If you have raised money, you should talk with your investors about what they would like to see on your Y axis to make subsequent fundraising rounds easy.
Understand where you are, how much you need and what you need to achieve before thinking on the next round.