What makes an early-stage business investable?

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What makes an early-stage business investable?

What Makes Early Stage Business Investable

You have a plan, you’ve started to implement it, but how do you get it to the next level by bringing in some outside investment? Just what makes an entrepreneur investment-ready?

We had a chat to some of Edge Growth’s team to find out exactly what they look for when they start to investigate enterprises to invest in.

  1. The ability to manage complex tasks yet still stay focused
    In a quickly-changing world, with disrupters like (ahem) Eskom and pandemics, the ability to manage complexity yet keep your eye on the prize is invaluable. Entrepreneurs who can juggle change and at the same time, ensure their people are on board, working together and for the same goal, are people who have the skills to succeed.
  2. Deep industry experience
    One of the key characteristics of a high quality early-stage entrepreneur is the ability to identify a problem in a growing market, and then solve it in an efficient, innovative and dependable way. This demonstrates inherent industry understanding which can be leveraged for solutions.
  3. A committed team
    In general, our experience has shown us that the key element for success as an early-stage business is a committed and complementary team of two to three people. This includes a visionary, a technical expert and a very strong sales person. The alignment of interest and purpose with the team is critical, and will ensure a well-defined execution strategy.
  4. Customer adoption
    At the stage of asking for third-party investment, you need to be able to demonstrate customer adoption and some revenue traction. As an investor, it’s important to understand the exit opportunities for the business and its potential to deliver on the financial forecasts.

Can you tick these four boxes? If not, there’s room for some growth. If you are strong in these four areas you’ll be well on the way to ensuring your business is investment-ready.