Intelligent SME.tech Issue 36 | Page 43

intelligent

// FEATURE //

market . Metrics showing early adoption and repeat usage help validate the underlying business model and future trajectory .
There are , of course , many metrics that can be used to show traction , but the best data points will be those that quantify product . Some of the most interesting for investors include customer acquisition costs , lifetime value , burn rate , revenue growth , margins and retention rates .
It ’ s also equally important to highlight dates where key company milestones have been previously achieved . Tangible evidence that a team is hitting key targets builds investor confidence in the team ’ s ability to meet future and bigger goals .
Money – demonstrating financial prudence
In today ’ s market conditions , capital efficiency is under increased scrutiny and investors will want to understand how much has been previously raised , what those funds were used for and the impact of those investments .
Ultimately , prudent spending is the name of the game . Providing VCs with recent examples of sensible spending , plus reasonable and transparent future cost plans can go a long way in convincing VCs to support your start-up . Proving ROI delivery on previous investments can also be a vital differentiator .
Like all rational buyers , investors seek good valuation deals . Ensuring that your valuation is accurate and can be verified with key data will also be crucial in ensuring a deal is struck .
Critical , savvy money management alone is insufficient . To secure venture capital for growth , start-ups must excel across all five key investment criteria . Mastering this mix will boost your odds of funding success . �

VCS WANT TO SEE EVIDENCE OF PROGRESS AND MARKET VALIDATION , NOT JUST COMPELLING IDEAS OR TEAMS .
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