Startup Lithuania pre-acceleration course: Startup Guide

Exercise 3.4.1. Is the investor a good fit for your startup

Is the investor a good fit for your startup?

It is important to consider some points to understand if you and your potential investor are a good fit for each other so you can form a strong partnership that will lead your startup to success. 

  1. Does the investor have valuable contacts and advice they can provide you?
  2. Can he/she spread information about your startup through their channels?
  3. What role do they expect in the decision making process and does this align with your expectations? 
  4. What are their needs for reporting and audit and can you meet them? (While investors usually ask startups to provide monthly, quarterly and yearly reports, some also ask for audits, which will be an additional cost to your company).
  5. Consider the issue of confidentiality. You will be giving out important information about your startup, so you have to make sure it will not be spread around too much. 
  6. Think about the issue of competition – some investors might have businesses in the same field as you or might invest into companies in the same field, so it is important to know and discuss what kind of information and how can be shared externally, so it does not affect your competitiveness
  7. Remember that for any successful partnership respect, trust and motivation is essential.

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