Gaining the buy-in of a Business Incubator in Sydney can mean the difference between an unrealized idea and being at the helm of the next tech breakout success.
However, it can be difficult to understand exactly what investors are looking for.
Having a good idea is certainly a big part of it, but there’s more to demonstrating that a startup is viable than a back-of-the-napkin great idea, or even a slick PowerPoint. Each early-stage investor or startup incubator will have different criteria, but here are six things that AppCurate looks for in the startups we work with.
1) Co-Founders rather than Founder
It’s just a reality that startups tend to do better when two people with different perspectives, but an aligned goal, come together. Co-Founders can bounce ideas off one another, bring different skills to the leadership table, and have heated – but ultimately productive – debate. When there’s just one Founder, that crucial dynamic is lost.
2) Substance over Lofty Ideas
One of the big mistakes we often see is that people go looking for startup incubators and investors before they have had the introspective look at where they – and their startup idea – is at. Investors are rarely interested in an idea in isolation.
3) The Co-Founder’s Categoric Commitment
Running a startup is a grueling experience, and it’s important that Co-Founders have the capacity in terms of – time, energy, and the family situation to make the commitment to long, exhausting hours with plenty of stress. Not everyone with a great idea has the personal fortitude and favorable circumstances to build a startup, but it’s what any Startup Incubator in Sydney will want to see before dedicating resources to supporting it.
4) The Co-Founder’s Skin-in-the-Game
Too often startup Co-Founders try to get everything financed without a commitment from themselves. At AppCurate we can deeply discount the minimum viable product (MVP), should the Co-Founders want to use our software development team. But we do want to see the Co-Founders invest in their MVP themselves.
5) Have a Good Sense of Timing
The success of a startup often hinges on it being the right time to launch the product. Launch too early and it will be hard to get customers to see the vision. Launch too late and you’re launching into an already-crowded space. Investors and startup incubators are always looking for startups that have managed to be a “zeitgeist” moment: Airbnb and Uber.
6) Clear Path to Positive Cash Flow
The nature of startups is that they’re often in a pre-revenue state when they start seeking investment, and this is fine. What’s important, however, is for Co-Founders to articulate a pathway to positive cash flow within the boundaries of the liquidity that they have access to.
There are a many startups and aspiring entrepreneurs out there, and the reality is that each Startup Incubator in Sydney can only back so many ideas. Co-Founders can give themselves the best possible chance of being selected if they can argue their position – and the value of their business – against the six criteria above.
For more information on AppCurate email us firstname.lastname@example.org and let’s together get on a Faster Path to Commercialisation.