5 Things to Highlight About Your Startup When Approaching Investors

Connecting with investors is like any other meaningful encounter; first impressions matter a lot. Right from the outset, investors always look for five key elements in a startup.

Highlight them to increase your chances of getting investors' attention. These key elements apply wherever investors encounter you and your startup for the first time, such as in the first message or email you send, and on your LinkedIn profile.

Here are the 5 key elements investors look for at first glance:

1. The Founding Team: Startups can get everything wrong and then pivot and make it big - if only the team is strong enough. Investors are aware of this, and most of them place a significant focus on the founding team, particularly the lead founder. Domain expertise, success in a previous startup, experience, and charisma are what most investors look for. Highlight your strengths and the strengths of the rest of the founding team.
2. Market Opportunity/Timing: Investors expect a zoom-in on the market opportunity. They’re trying to figure out if what you’re building is worth their money in the present market context. 
3. Traction: Traction isn’t confined to how developed your software is or how much revenue you’ve got rolling in. It can also refer to the strategic partnerships you’ve built. You need to convince them that you’ve got a strong start and there’s potential for further growth.
4. Moats and Competitive Edge: The fourth point revolves around the startup’s defenses against competitors, or what is often called ‘moats.’ These could be a patent, proprietary technology, first-mover advantage, niche expertise, or even a valuable business partnership. These ‘moats’ are what keep your competitors at bay or give you a competitive advantage.
5. Other Investors: This point is actually the most important one for most investors. Most investors prefer to follow other investors rather than take the lead. This is also more efficient, as it means someone already did some diligence they might rely on. If other investors have already put their money into your startup, you’re more likely to gain new investors’ confidence. If you raised capital from several investors, highlight the most famous or prominent ones.

You should do your best to highlight your strengths in the above five, right from the outset.

If you’ve got all five points covered, use them to your advantage. Highlight them in your first message or pitch right off the bat. If you’re well-positioned in only a few of them, zero in on those and highlight them in the most compelling way you can.