Angel investor and CEO Badal Shah analyzes the boxes that every entrepreneur needs to tick.
5 min read
This article has been translated from our English edition.
The opinions of the employees of You are personal.
Today’s investors are looking for much more than a clear and timely speech. Aside from the leadership team and business plan, potential stakeholders want to make sure their investment is solid while the company has real growth plans.
Badal Shah is a multi-outlet entrepreneur with experience in chemical manufacturing, real estate software and healthcare technology. He is currently CEO of his own company, The Anthos Group, and is a board member of Federal Savings Bank and Cabrera Capital Holdings. Here the active investor shares some of the key traits he looks for in promising startups …
People more passion
Active investors have heard hundreds of promises about the “next big thing”. However, what is often overlooked in pitch is the “wow factor”. It is important to highlight the true passion for the project in question.
“People inspire me,” says Shah. “Those who have tried new concepts have grown out of their first love and created something that the public is ready to make part of their lives.”
True passion should always come from the royal tone.
Thesis and adaptation
Startups and investors play a lot in matchmaking. In many cases, startups avoid investing because the chemistry just wasn’t there. It is important to recognize this early on, as neither party wants to be micromanaged or deal with additional stress in an already stressful situation.
“It is always difficult to balance humility with the direct question of why your business is the best, most profitable opportunity,” says Shah.
Building relationships, adapting to the investor’s schedule, and presenting in the way you prefer are important factors that go beyond the language itself.
Image: Michael Longmire via Unsplash.
When a company is asking for a large sum of money, the investor expects honesty. When founders are building a relationship with a stakeholder, it is imperative that they be transparent in all areas of their life so that the same trust remains throughout the relationship.
“I need to understand the founders’ philosophies, family life and hobbies,” says Shah. “These are important attributes to understand whether they can handle the marathon ahead of them.”
An investor looks at the big picture, so it’s important to share all the details.
“You may have great concepts, but what is your support structure?” asks Shah. “If it’s not intact, the investment can be risky.”
Remember that founders are always in capital increase mode. It doesn’t have to be a formal presentation, but you will be constantly assessed as you share your ideas with new contacts. The company and your employees trust you for the well-being of this company.
“A great founder should always raise capital from strategic investors,” says Shah. “The best time to raise capital is when the company doesn’t need it.”
“Is the CEO an active listener?” asks Shah. “If you listen and are willing to learn continuously, you have someone who will be successful.”
An open mind can reach new levels while a closed one misses opportunities. Every entrepreneur can identify certain tips that have changed their course. While the founders may be the technical experts, they should always be open to ideas and guidance.
“When you’re not actively listening?” adds Shah. “It’s a dangerous sign and my check is off the table.”
When owners pitch, they are valued well beyond their concept. Relationship building, timing and transparency promote your encounters with investors and put your company in an excellent position to be successful.