Investors are found everywhere. You can find them on popular fundraising platforms or social media apps you have in our smartphones. Entrepreneurs are always in search of these individuals to secure some money for startup funding. Some investors agree to invest in new startups, while others have a long list of excuses ready for them. These investors try to find out some best startups who could give promising returns to them. They have many valid reasons to not invest in your company. In this article, I will tell you why investors are not ready to invest in your startup.
- 1 10 Reasons Why Investors Do Not Want To Invest In Your Startup
- 1.1 You Are Not Ready
- 1.2 You Approach The Wrong Investor
- 1.3 Your Product Lacks Market Interest
- 1.4 Investors Do Not Trust You
- 1.5 You Are Not Different
- 1.6 You Don’t Connect With Co-founders
- 1.7 You Spend Too Much
- 1.8 Your Company Is Not Affordable
- 1.9 Your Marketing Sense Is Zero
- 1.10 You Don’t Seek Angel Investors
- 2 Conclusion
10 Reasons Why Investors Do Not Want To Invest In Your Startup
You Are Not Ready
Yes, this is the very first reason. Investors don’t see you as the only go-to solution for the customers. Due to this, they think your business will waste their investments and valuable time. On the other hand, you have not prepared enough with your business plan. Therefore, you do not communicate with them effectively. Consequently, investors offer excuses instead of money.
You Approach The Wrong Investor
Sometimes you fail because the investor is not the one you are looking for. Understand that investors can have their own tastes, and they are absolutely free to make decisions. Many of them love to invest in tech startups, some in ecommerce, healthcare, and the lists go on. You should seek an appropriate investor to support your business.
Your Product Lacks Market Interest
When your products or services do not agree with the market, investors will simply say a big ‘No’ to you. I mean why will they invest in products that seem to have no demand at all? Today, investors are getting smarter, and they will invest in something that has some demand in the market.
Investors Do Not Trust You
Some people are extremely superstitious when it comes to giving their valuable money. In today’s world, competition has broken all records. Millions of startups fail and only a few emerge in the market. Investors know that very well. Hence, you need to win their trust so that they help you live your startup dream.
You Are Not Different
There occurs a situation when you have nothing new to offer to the people. Also, your rival might be launching products and services that you are offering to them. When investors come across a plethora of similar ideas, they get confused. You can innovate the same product and present it in a different way.
You Don’t Connect With Co-founders
If someone finds out that you have poor relationships with your co-founders, why he or she will help you? Startups having founders with weak relationships end up early. Investors feel uneasiness while investing their money in these startups. So, they could say no to you.
You Spend Too Much
Entrepreneurs who don’t know the value of money fail to attract investors all the time. If you are someone who spends more than you should, investors will ignore you at all costs. Remember those founders who are financially intelligent tend to get the most from the investors. So, start learning more about managing funds.
Your Company Is Not Affordable
When a company starts its journey, it gets difficult for even the experts to determine the actual pricing. However, when this company spends one or two months in the market, experts start understanding its worth. If your startup is overpriced, you will not be able to attract a lot of investors to your company.
Your Marketing Sense Is Zero
Strong marketing is the only thing responsible for the growth of a company. Rest other things come after marketing. Investors worry much about how the marketing of a particular company is going on. They will invest in startups who are working hard in the area of marketing. Therefore, start effective marketing of your company to attract new investment opportunities.
You Don’t Seek Angel Investors
Angel investors are professionals who love to take risks with money. They can invest in any startup they like. Companies like Facebook, Amazon, Google, etc. became one of the biggest players because angel investors backed them. You should definitely seek them besides some ordinary investors.
So, these are the top 10 reasons why investors are not willing to invest in your startup. You will hear a no if you don’t work on things I have told above. Investors show interest in business funding. However, you should have something that gives you cutting-edge over your rivals. If you are confident and have a brilliant idea, investors will have no problem in offering money. I also described angel investors in this article. You should undoubtedly approach them because they are mostly the first ones to open doors for new opportunities for you.