Investors are not attracted to every business there is. One of the common mistakes I see from new entrepreneurs is that they think their business can easily attract investors.
In fact, some types of businesses are not “sexy enough” to get these moneyed-types to pony up for the business. Unless the investor is your Aunt Matilda or your best friend — who are basically investing in YOU and will support you whatever business you start — it is mighty hard (if not totally impossible) to get venture capitalists or angel investors interested in a daycare business.
So what attracts these investors’ interest? If you are talking of multi-million types of investments, INTELLECTUAL PROPERTY. Investors look for businesses that can provide that extra value, if not totally revolutionize how things are done. There’s a breed of investors who look for hard-to-replicate technologies, and fund those. If successful, those are the types of businesses that can give them the best return for their monies — which of course is what the investors want.
Intellifit , a business launched by Albert Charpentier, uses body-scanning machines to help retailers sell clothing. Because of the novelty and technology behind it, the business got funding from an angel group called Robin Hood Ventures. The maverick Mark Cuban invested in Brondell, which manufactures Japanese-style toilet seats that wash and dry your derriere.
The key is to be creative in addressing a need or a problem, and you stand a greater chance of getting investors’ attention. Be original.
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