As I outlined last week, trophy angel investors are always looking for trophy entrepreneurs. In many areas, not enough entrepreneurs meet the criteria, so it’s still a buyer’s market. The result is that the Main Street Venture Fund consistently has more money available than good opportunities for investment.
After considering about 200 investment opportunities over the past two years, we have established a decision making process to identify trophy entrepreneurs and startups. It consists of eight major criteria, which we call the “Eight P’s for Successful Funding”.
Proposition. A poorly understood value proposition causes false starts, lost time, costly mid course corrections and general frustration for all stakeholders involved. The value proposition is a short statement that clearly communicates the target customer, the customer’s problem and the pain that it causes, the unique solution that addresses this problem, and the net benefit of this solution (value derived versus relative cost) from the customer's perspective. Creating a strong value proposition requires substantial customer insight, thorough study, an understanding of the real value of intellectual property, thoughtfulness, and several iterations.
To read the full, original article click on this link: Startup Professionals Musings: Startups Need the Eight P’s for Successful Funding
Author: Martin Zwilling
