Venture capitalists have invested a record $500 million in the third quarter of ’16 with the gradual mainstreaming of the AR/VR industry. Here in this post, I am going to list the factors that Angel investors and Venture capitalists look before funding the company.
The startup team
Venture capitalists bet on the jockey initially rather than the horse. Similarly, make sure the startup team consists of individuals with integrity and an open mindset. Do the individuals have the tenacity to pursue the company’s vision as well as transpose it to a slightly different product when the necessity arises. In VR/AR industry, this point is highly valued since this is still a nascent industry and the startup team should have their pulse on the industry.
Sorry to break it out to you, but venture capitalists look at awesome ideas all the time. They are here for ROI(Return on investment). What can you do for them in the shortest time possible?. They have a board to answer. Try to show them that your product is not hobbyist’s pass time and is actually ready to enter into the mainstream industry.
Augmented reality looks more promising
Many investors have said that AR seems to be more promising of the two interrelated industries due to more applications in real world. Augmented reality is the inclusion of real life objects into the environment. So try to collect data from the user as much as possible in your device.
Anyone can have an idea. People have ideas all the time. It is the execution that matters. Ask yourself, Is this product or service I have in mind going to satisfy a market need?. How distinct is my product from my competitors?. Can the product stand the test of changing trends or take advantage of it before it dies out?. Make sure whatever domain you choose to specialise in VR/AR, calculate the viability of your product.
Rule the Search Engines
Content is king in the digital era. Hire content writers and write about stuff that increases SEO of your website. Quality content lasts for a long time and it is definitely worth it to hire a content writer to increase your SEO in the search engine algorithms. Venture capitalists like to invest in companies that rank high in Search engines.
Humans are social animals after all. We look for social affirmations in a medley of ways. Promote your products relentlessly and engage your followers in meaningful communication. Amazon looks more promising than Flipkart because of customer satisfaction. Take time to explain your digital strategy to investors.
In Conclusion, these factors in a major part determine whether the investor decides to invest in your startup or not. It is not possible for any company to perfect anything. As entrepreneurs, Self-improvement is really mandatory. VR/AR is the future, make sure the dreams turn to reality.