Lots of people, myself included, have written lots of posts on how to get funded. In fact, a whole section of this blog is devoted to that topic. While all those details are great, it struck me recently that there are three keys to getting funded:
Team: A founding team (being a sole founder is tough for investors) consisting of one product / UX person and one well-rounded developer. At least one of you needs to be completely consumed by this idea.
Later stage teams are different of course. There, investors are looking for deep industry expertise and relationships and management team members that know what scale looks like.
Vision / opportunity: A clear problem or opportunity for a large market. A unique technology or market insight that no one has exploited yet. One that can be rolled out into a very large company.
Traction: Nothing gets investors moving faster than traction. If you’re acquiring users at a furious pace expect investors to be knocking your door down.
It only takes two…
While the three keys are each very important, in my experience it only takes 2 out of 3 to get your funding:
If team is missing, this is very tough for sure. After all, we invest in people. But if you have a crazy big vision and already have results, we can recruit in heavy hitters to round out the team.
If the vision’s not big enough, but you have a killer team and are generating early results, then many investors will work with you to flush out just how big the idea can be.
And if you don’t have traction yet, but you’ve been there done that, got the t-shirt and are coming back for more with a new idea, you’ll always get funded!