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Why Investors Aren’t Getting Back to You

GrowthPal Blogs : startup investing platforms
Unable to get in touch with investors no matter how hard you try? Perhaps you’ve been successful and managed to exchange a few emails and phone calls – till one day, they completely stopped replying, or told you they were no longer interested. Investors will only be willing to invest in your business idea if they can see it’s in it for the long run. They want assurance that your idea can and will do well in the upcoming future. Naturally, they’ll only be willing to invest large amounts of money if it’s going to be of some benefit to them, and where the money is involved, so is caution. They’ll be thinking twice and thinking hard as to whether or not they really want to invest in a startup. Here are a few reasons why investors may not be reaching out to you again.

Too many words, too little action

It doesn’t matter how brilliant and out of the world your startup is – if you don’t seem to have any solid proof as to why it will thrive in the industry, no one’s going to be willing to bet on you. Investors are going to want to know if you’ve been able to sell your product yet and whether or not your campaigns have been successful. Often, it doesn’t matter whether this is your first start-up or not, but it goes without saying that investors would be more willing to invest in an experienced entrepreneur. It’s important that you’re able to convince the investor that your idea is worth their money and time.

What about your teammates?

It’s not only you or your startup idea that the investors will be looking at. They’ll also be having a look at your team, and if your teammates have the skills to sustain a startup in the industry. Do they work well under pressure? Can they meet deadlines? Are they devoted to their job?

At times, some investors may not even need your teammates to be very experienced. After all, at the end of the day, it all boils down to how they work, and of course, how they work in a team. If there are a lot of differences and disagreements between your team members, it’s unlikely that your startup will succeed.

Do you have a foolproof plan?

If you, as an entrepreneur, do not have a vision for your startup, there’s very little an investor can do to help you establish yourself in that market. Make sure that you have an elaborate business plan ready, before approaching any investor. Keep in mind to make the plan realistic and achievable. It helps the investor understand what exactly your idea is, in case they were previously clear. Along with that, it’s a brilliant way for you to track your progress.

A good plan should include information on who you are, and what your startup will do. Jot down your operations and provide investors with thorough knowledge of your target market, your organizational structure as well as potential competitors. Include data on how well you expect your business to do in the near future, and set out objectives you’d like to achieve on a quarterly basis.

Stick to the facts and figures. Keep. It. Realistic. We cannot stress this enough. Investors will see right through your business plan if you’ve got things that are far-fetched and unrealistic.

Great minds think alike – but not the same!

There will be instances where ideas similar to your startup idea have already been introduced into the market. However, if an investor finds that there’s nothing significant that sets your business apart from the rest in its field, then it’s time you start thinking. What could you do to make your business unique? Are you trying to create something new and different? Has it already been deployed by someone else before? Did it do well? Could you make it do much better?

Can the investor get along with you?

Often, investors invest in startups for the long term. They need to be assured that they’ll be able to get along with you. Do you two share the same ideas and thinking? Are you open to suggestions? How well do you take criticism? Do you handle rejection well?

Another important factor is trust. The same way you’ve gone above and beyond (hopefully) to find out about your investor, so have they. It doesn’t matter how brilliant your idea is. If they feel like they aren’t too keen on who you are as a person, or perhaps even your leadership skills and judgment, they’re going to want to step back. It’s harsh, but it’s the truth.

It’s important to be clear with your investor. You don’t need to tell them all the minute, tiny details, but it’s important that they know about things that matter and are relevant. If an investor feels like you’re hiding something from them, they won’t be too pleased.

Too many goals

It’s natural to have a lot of goals and dreams in mind. Without a doubt, it’s a good thing. Try not to be the type of entrepreneur that gets started on a new goal without completing the one you were previously working on.

Investors will prefer to see you working on introducing one product at a time. If they think you’re trying to do too much at once, they’ll assume you haven’t planned out Give your 100% to one thing, instead of trying to do a lot at once. Trust us, this won’t get you very far.

Different Industries, Different Understanding

There are high chances that the investors you’ve been trying to contact may not be willing to invest in your market at this given moment. Often, certain investors only stick to their field of expertise and will be reluctant to help you out if you don’t fall under that category.

Perhaps you’ve managed to find an investor in your industry, but yet they aren’t willing to invest. There could be various reasons for this. Maybe you need to study more about the industry and how it works. Perhaps you’re looking in the wrong industry. Make sure you’ve studied both your investor and the industry they operate in, before getting in touch with them.

You need GrowthPal to help you out!

Find the right sort of investors and getting in touch with them can be a tedious job, especially if you don’t know where to look. That’s where we come into the picture. At GrowthPal, we focus on helping you smoothly scale up to success, and help you to significantly reduce the time you’ll need to devote to attain your goals. According to your business goals and requirements, we provide you with personalized and relevant opportunities.

Get data & intelligence-driven actionable recommendations. Our platform caters to over 80,000 Indian and global investors, allowing us to provide you with relevant investors as per your ticket size or your market, for example.

Reach out to us to find how we can help your business grow. Contact us today at [email protected]
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