For every Twitter, Snapchat and Tesla Motors, there may be two or more promising Colorado startups that fail to take off because they are not adequately positioned for success. In a major tech hub such as Denver, quite a few startups that should have skyrocketed instead languished after dubious efforts to attract venture capital investors.
What Colorado tech entrepreneurs should do is adopt a mindset similar to those of actors who move to Hollywood in search of stardom: always be ready to look great for the camera. Likewise, people should adopt strategies to position their companies in a way that they are always interesting and attractive to investors.
Startup owners who have already achieved some success, even if it is modest and mostly internal, should be able to present it to potential investors in a visually appealing manner. To this effect, it makes sense to invest in a cloud-based business reporting solution that can be accessed by means of an online dashboard. Entrepreneurs never know when they may run into prospective investors at a Denver Starbucks. When this happens, it’s convenient for them to be able to access their business reporting dashboards from their smartphones.
In recent years, venture capital investors have been known to evaluate key performance indicators. Principals at startups should become familiar with their KPIs so that they can show investors how they are working towards meeting their immediate goals. Some of the most important KPIs that investors are paying attention to these days are related to branding.
Finally, entrepreneurs should not underestimate the legal concerns associated with growing a business. Not all investors will have good intentions, and some can be downright predatory, which is why it makes sense to retain law firms that focus on business funding, corporate structure and commercial litigation.
All Business, “Positioning Your Startup to Raise Venture Capital Funding“, Curt Cuscino, 07/27/2018