VCs and angel investors trust entrepreneurs with their money on daily basis. The return in cash, of course, is the main motivator (most of the times) behind their investments, yet there are other powers that keep the investors active in the very risky and highly-competitive startup environment.
Being aware of these beyond-money investment motivators will help you improve your investor pitch and outrun the competition, so take them into consideration.
The impact – investors need to know that their money can make a change. They need to know how they can bring value to your company not only by writing you a check but also as strategic partners. The investors need to know that their part in the company is making a real difference. They want to be recognized for their part in your startup success. In the end, receiving recognition is an important motivator to do something, isn’t it?
Working with brilliant minds – the majority of startup investors are entrepreneurs themselves. They enjoy the startup life and know its ups and downs well. Working with other entrepreneurs is wonderful for investors, as they have the opportunity to share their knowledge and experience, to inspire the entrepreneurs, but also to learn from them. Working with brilliant entrepreneurs is one of the great ways to keep their entrepreneurial spirit alive and still make money.
The competitive edge – investors take pride in their portfolios. Everybody wants to discover the next big thing and to become the first one to get their hands on the greatest new idea. There is a competitive edge in every investment they do. The competition between investors is on fire when on the scene appears a promising company. The thrill of closing a deal with “the hottest” company at the moment is exciting. In the end, the sweet competitive edge is a big deal in the entrepreneurial world.