You’ll get different advice from different people when it comes to what makes an investor invest. And there isn’t one simple formula. And certainly different investors look for different types investments based on their appetite for risk. But there are some basic things that most investors look for when they’re evaluating an investment opportunity.

“The entrepreneur has to move, and move faster.” 

Certainly different investors look for different things when it comes to what they consider to be a good investment opportunity. Is is unlikely you will have all of these, but the more you have, the more likely you are to garner an investment. Here are a few things that most investors look for in any opportunities or pursuing:

• Large Market Opportunity. The market you are pursuing and the problem you are solving for your customer is large and significant.
• Unique Value Proposition. You must be able to demonstrate that your product or service or even your approach is unique and how what address is your target market. It does not need to be unique for every market but it does need to be unique for the market you’re going after.
• Effective Business Model. You need to be able to show how your unique approach to the market translates into a business and pricing model that customers are likely to embrace.
• Current Market Traction or Performance. For more mature companies, this takes the form of actual financial performance. For less mature companies, this takes the form of evidence that the market (not just you) believes that your product or service brings value.
• Leadership with the Right Stuff. Investors prefer leaders that have a proven track record at growing a business as well as experience in the specific market the business is pursuing. Investors don’t want entrepreneurs to make mistakes on their dime.
• Discipline. Investors want to put their capital in the hands of leaders that will apply it intelligently. This requires discipline that takes many forms. It starts with having a true financial plan and understanding the numbers and metrics that drive success the plan.

We all wish we had all of these characteristics but the bottom line is that if you lack to many of these, it becomes very difficult to raise money.