If you’re thinking of raising funds for your business it’s important to know what investors are looking for – below are the 7 categories that describe what they’re most interested in. If you have all of these taken care of to a high standard your chances for funding will look very promising.

1. The people/promoters

· Who are the promoters and how experienced are they?

· What motivates the promoters – success, the idea, profits?

· How exposed are the promoters to failure?

2. What is the business proposition?

· Is this a credible business opportunity where there is an unmet need, defined customers, and little threat from competition?

· What is the business model?

· Is there a clear business plan?

· What drives revenue and profitability?

· What is the exit strategy?

3. Governance

· Who are the members of the Board?

· Will the company have sufficient funds to deliver on the business plan?

· Are the risks to the business defined and understood?

· Will the Board be able to ensure that risks are manageable?

4. The market and the realities of execution

· Is the timescale of revenues credible?

· Are the people involved likely to deliver at the operational level?

· Do they know the market and have experience in the market?

· What will drive profitability – the product itself, technology, sales exposure?

· Who will actually do the work in the market?

5. Financials

· Do the financials make sense?

· What structures or strategies are proposed to limit the downside?

· What happens when the first tranch of funds runs out?

6. Intellectual property

· How will the company protect it’s IP position?

7. Minor Shareholders

· Is there a shareholder agreement?

· Does the deal balance the inputs of the founders and the providers of the cash?

· Are the interests of minor shareholders protected?

· How will minor shareholders benefit from the company’s success.