Investors have different requirements for deciding whether to pour their money into a startup during its development progress. In order to attract investment, startups should meet those requirements.
After just a year and a half, three startup models have had to halt operations. Only one out of 50 firms decided to invest in them. These are the difficulties WISAMI, an online software company, faced when it began its business.
Pham Khanh Hoa, Co-founder, CEO, Wisami said: In the beginning, our startup model was not suitable and was immediately rejected. Although it had already brought in some revenue, it wasn't developing fast enough. So we had to turn to another one.
Meanwhile, APPOTA, a mobile platform provider, has attracted many big investors such as IDG Venture and Cyber Agent. However, it also faced challenges in calling for investment during its development stage.
Tran Quoc Toan, Director of Sota Company, Appota Corporation said: In the development stage, we provided new products for the market. In order to attract investment, we must ensure all Key Performance Indicators are accomplished to build trust among investors. Each investor has different requirements, so it's important to meet those requirements.
In order to become an enterprise, startups have to complete 7 stages. In each stage, startups need to know which investors are appropriate.
According to investors, calling for investment appropriately in accordance with each development stage helps startups maintain their operations and prove their potential in the eyes of investors.
