Some has heard people talk about following options: a great business model, new market idea, etc. It’s true.
In addition to that – clear exit strategy for investors, and partnerships with big brands already signed. The clarity is fundamental for investors and it’s important to prepare them for all scenarios of the business outcome. Investing in venture capital is always a risky enterprise; this fact should never be underestimated, and communicated explicitly to the investor community. The matter of responsibility in case of a negative outcome should be negotiated in advance.
What concerns big brand partnership on the list, this brings in a degree of psychological safety, which is especially important for small investors. Big enterprises can boast of a strong legal team, which runs a careful scrutiny of any project prior to giving a participation consent. To some extent, prominent brands on the list give a guarantee, in one way or the other, that the business project at least is not a fraud and is going to work out, one way or the other. However, it is important to apply a fair share of common sense when signing up for any engagement – especially long-term.
by Christopher Fowler
