Jordan: Are investors open to newly formed ideas with supporting details, or are they only looking for fully polished and functioning startups (apps, sites, etc)?
Obviously, different investors are looking for different proof points prior to investing (investors on crowdfunding websites may be looking for cool product concepts, while other investors may be looking for customer traction). That being said, as a general rule, a new idea is not enough to attract capital. Ultimately, successful companies are built by strong management teams, and provide their customers with a strong value proposition. Without the ability to execute on the idea, it is relatively worthless. There is an interesting take on the value of an idea by Derek Sivers, a serial entrepreneur, on his blog - https://sivers.org/multiply.
If you think you have a great idea, do something about it. Here are a few do’s and don’ts:
Do:
- Ask potential customers what they think, ask experts in the space, maybe even ask some relevant investors.
- Collect that feedback and get your product/service to market, then get feedback from your customers and potential customers.
- Read “The Lean Startup” by Eric Ries.
Don’t:
- Ask people to sign NDAs (non-disclosure agreements) before sharing your idea. Remember, your idea isn’t worth much by itself, so the value you will extract constructive feedback you receive will far outweigh the risk that someone steals it.
Each week the team at New World Ventures answers your questions about startups, raising capital, technology, and entrepreneurship. Submit your own question and see more answers here.
