When is the right time to invite an investor to your startup?
Well, before that question, you could ask that even “do I need an investor for my startup at all?”
My answer is that if you are in the tech domain, and you are not wealthy (or you are, but wanna share the startup risk) then you certainly need an investor.
The tech domain evolves very fast. New features you added to your App have very short life and if you don’t expand fast (really fast) what you offer to your customer today may not be the top of the line service/product next month. So you need to be ready to evolve fast, execute fast and expand as fast as you can to keep the blue ocean ahead of you blue.
The trap that most of the founders of startup companies in Iran fall in is to believe that their product or service is unique. Second, is that they think that those features will stay unique. The worse mistake is that they believe that the features will attract customers like a magnet attracting small nails. To some extent, those assumptions may be correct, but not higher impact than 20% on your business plan.
Networking with the right investors could have following benefits for your startup in Iran:
- They provide you market insight, trends, etc.
- They could help you fine-tune your financial plans,
- They could help with your business plan and marketing strategy.
The reason I made the right investor Italic is that not any investor could help you with the above domains of business expertise. Indeed, you do not need a silent partner (unlike many founders think it is the best option). You need an active, informed and intelligent investor who could bring in loads of experience and knowledge that you miss in your team and can practically fill in a seat on your board.
Another advantage of involving an active angel into your startup (specially prior to lunch) is that s/he could bring in insight and expertise for the time you go for series A.
A well-crafted launch plan can benefit from a business savvy investor. The successful launch could develop critical momentum in the market and save a lot of marketing dollars. Therefore, my suggestion is that you would better off talking to investors well prior to launch, and have one on board prior to the launching date.
Extras: Download our investor’s deck here.
Tags: #InveststartupIran #IranStartup #LaunchMyStartupIran