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What do investors look for in a startup?

Raising money is trickier than people think. They figure that because there's a lot of capital floating around the marketplace, it's easy to raise. But raising capital is probably one of the hardest things you will do as a founder, because dealing with technology and building a product are the things you can somewhat control. If you are asking a VC, angel, or friends and family for money, the number one thing you have to remember is: Don't become enamored by your product, because they're investing in you as the founder. The biggest question is, why should they invest in you? It could be that you have a great track record, you have a special skill that others don’t, or you have built a team and advisors around you that will give them confidence.

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Anonymous Author
Raising money is trickier than people think. They figure that because there's a lot of capital floating around the marketplace, it's easy to raise. But raising capital is probably one of the hardest things you will do as a founder, because dealing with technology and building a product are the things you can somewhat control. If you are asking a VC, angel, or friends and family for money, the number one thing you have to remember is: Don't become enamored by your product, because they're investing in you as the founder. The biggest question is, why should they invest in you? It could be that you have a great track record, you have a special skill that others don’t, or you have built a team and advisors around you that will give them confidence.
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Anonymous Author
I get pitched to a lot, and the first thing I look at when a company pitches to me is the people. Who are you? Are you going to be able to execute, and are you flexible enough to adhere to advice? Once that's out of the way, then let's look at your product and your product positioning. The question becomes: Are you actually able to sell that product, and do you know where it fits? People often come with great pitches without addressing where it fits, how they’re going to grow, and what that will actually mean for them and for me. And when these companies go for their second round of investment, I always tell them to find somebody who has a Rolodex of people who they can pitch you to. It's fine to get that money, but you don’t want to just get money and no advice, with nobody to place you into other companies. You have to buy connections. So if you're going to get some money, buy those connections as well. 
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