Answer four questions and get funded!

To be honest, this post ended up with a lot more than four questions. I apologize in advance for that. This is a common question that founders have- “How can I get early stage funding for my startup?” I want to answer it from my point of view and highlight what I look for in startup pitches before investing. Here goes…

  1. What is the problem? How big is the market, and how are customers solving it currently? Don’t hide information about your competition because it shows that there is a real problem.

What do I look for?

  • SaaS companies that can scale without too much manual intervention. Gross margins >60%

One example of an investment opportunity that I passed recently: A Femtech company that issued cryptocurrency to “New Moms” if they viewed ads in their app. I thought this was a force-fit in terms of using current buzzwords to raise capital from investors. From what I remember from observing my wife after the birth of our daughter, I recall that “New Moms” do not have spare time to spend away from their babies! I just could not envisage moms watching ads to get rewarded with a crypto coin.

I am happy to look at innovative applications of blockchain, but I am not really into cryptocurrency for now. Did I miss investing in the future crypto/ femtech cross-over blockbuster startup? Only time will tell!

Originally published at https://www.linkedin.com.

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Life-long Learner| Interested in all things Digital| Ex-Startup founder| Father of a lovely daughter | Into Dad jokes (much to her chagrin!)

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Renjit Philip

Life-long Learner| Interested in all things Digital| Ex-Startup founder| Father of a lovely daughter | Into Dad jokes (much to her chagrin!)