Blog

Investing in a Startup Project: Why the Project Stage Matters

The «startup project» stage has significant advantages over the stage of «startup idea». As a rule, the concept of the idea is already developed into a specific business plan, and the initial business model of the startup project is being tested.

The innovator is already the project manager at this stage and has a team of like-minded people. At this time, the startup project team goes through a period of adjusting to each other’s characters and testing the realities of working together. Naturally, this strongly affects the sales results within the chosen business model. Here it is very important to define the tasks and the scope of responsibility of each team member. That is, the team of the startup project must be built as a single, well-coordinated mechanism.

Investing at the «startup project» stage is quite attractive to investors and less risky than at the «startup idea» stage. Again, for an investor the most important things are the relationships and cohesion of the team, and only after that the business model itself.

To develop a business model for a startup, it is necessary to define the target audience and understand its needs, which makes it possible to build an effective sales mechanism and ensures steady profit.

It is important to note that preference is given to unique startup projects that can simplify, ease or improve the work of something. However, it is much harder to get investment for a completely new product, whose creation and implementation is itself the startup project. Here, a very important trait of the project manager is the power of persuasion and facts that can show that consumers need such products and that they are connected to possible analogues.

Overall, the personality of the project manager is almost the leading factor of success in obtaining investment. As a rule, these are exceptional people who can captivate others with an idea and lead many people behind them, have outstanding persuasion and influence over people, work more than 12 hours, 7 days a week, and are confident in the success of their startup. These factors are the foundation of a productive and long-term cooperation with an investor.

So, at the «startup project» stage, investment is most often needed to test the business model, increase sales, and fund management, office organization and marketing. At this stage, the prospects of getting significant investment are much more realistic than at the «startup idea» stage.

Important! Startup projects considered attractive to investors are those valued at 50 000 USD or more.

Keep in mind that the development period of a startup is very short (6–12 months), and if results are positive, it is possible to obtain investment at the «startup project» stage that meets all the criteria above, already today.

 

Don’t put off to a distant drawer what can be done now — send your inquiries to info@1exip.co.uk We are open to cooperation!