How to invest your money using technology?

People need to be wise and smart. Since change is constant, securing future is essential. There are numerous investment opportunities available today; in fact, there are more options to choose from. Nowadays, investors seek gainful money-making market opportunities through technology business based on services or products that addresses customer’s real problem. Numerous technologies and ideas exist, but majority fail to meet “full scope of investment criteria” from venture and angel capital investors. Actually, investors hardly find outstanding business opportunity.

Brilliant technology alone is not enough for a business to survive. Customers must be willing to spend tons of cash just to solve the dilemma and to prioritize finding the solution. No matter how brilliant your idea, customers will not buy your product because of tough economic. Your idea will remain the same –an idea and not an income generating business.

Things that Investors are looking for in a Business:

1. Clear problem description that your business wants to solve in the market: This includes evidence that clients/customers are much willing to spend their money to solve their problem. You also need to provide evidence on how will the product solve the problem or even lessen the pain.
2. Potential for High-Growth: Business must address growing or large market opportunity.  You must have clear understanding of competitive landscape and customer segments in your ideal market/s.
3. Competitive and sustainable advantage: As business owner, you must have limited large competitors, or well-funded entrants in desired market. Investors are looking for business model or protected technology that will give sustainable advantage to customers and business.
4. ROI or Financial “Return of Investment”: You need create a well-developed financial plan which clearly demonstrates how you your corporate can make money, and other reasonable scenarios if when investors will receive investment cash return. Unquestionably, this has to be braced by terms and valuation of current investment that business is requesting the depositor to consider.
5. Thorough execution plan and experienced management team: You team must include individual who have significant knowledge and experience on the field, understand specific target market sub-segments and have customer focus. Basically, your business senior team must consist of individuals who have previous experience in technology start-up. In addition, your team must reflect characteristics of prosperous entrepreneurs: strong leadership skills, creativity, passion, adapt to market changes and ability to become flexible.

All investors seek comparable characteristics in investment opportunities. Early stage investors accept more risk related with customer and market validation; while later stage investors demand more proof of customer and market validation to support investment. In the field of “growth potential”, early stage and angel investors differ from “venture capital investors”. Early stage and angel investors deploy small sum of capitals and usually fund smaller opportunity. In contrast, the venture capital investors particularly those who are in later stage funds require substantial “higher growth potential” for investment opportunities which they evaluate. Why? They tend to capitalize larger money so that business ultimate value needs to higher to generate similar return rate.

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