Startups and businesses on the whole are confident that their product or idea will attract investors. However, getting a steady stream of investors is not a challenge, but getting the right kind of investors is the dilemma.
Because capital is one of the most significant ingredient for any business to prosper, they often face challenges due to lack of financial backing.
After a thorough market research and data analysis for your startup, you may have an idea of what is the type of funding that you need.
He gives advice keeping in mind the Covid situation and explains how the investor’s sentiment has altered due to the pandemic. Karim’s view is that investors don’t want to invest in risky business, though it does not mean that they don’t want to invest in start-ups. On the contrary, start-ups still constitute a major section of the economy.
Investors, however, want to invest in start-ups with more validation post-Covid. Unlike the past, where funds could be raised even without a prototype, now investors want to see prototypes, market validation and the team which will be suitable to execute the particular business. Investors want to know what is unique about your idea and to decrease the level of risk involved in it.
Karim believes post-Covid presents the challenge that even accelerators don’t want to invest if the business idea is not well articulated. For this it is important to take feedback from mentors who can guide you about your ideas.
Hence, to conclude, for raising investment for ones start-up post Covid is a challenging task and can resolved by taking constructive feedback from mentors and complying to what investors are looking for.