In today’s competitive market, it is essential to have an innovative product in order to stay ahead of the curve. But innovation needs funding. What do investors look for when assessing a product? Having worked in a corporate ventures team that invested in nutrition start ups here are my thoughts:
First and foremost, your product must have a unique selling point that sets it apart from the competition. What makes your product special? Why would someone choose your product over a competitor’s? You need to be able to articulate why your product is the best solution to a problem or meet a need that exists in the marketplace.
An important thing to remember is that investors are looking for products that solve problems. If your product doesn’t serve a purpose or address a need, it’s unlikely to receive funding. So think about the needs of your target market and how your product can help them before approaching investors. Along with the value proposition it’s also critical that your product tastes great and functions well as this will keep your consumers coming back for more.
You need to have a solid business model. Investors want see that there is high potential for returns on their investment, so it is important to be able to show that your product has high potential for growth. How will you make money? What are your costs? How much will you charge for your product? An investor wants to see that you have a viable plan for making money and that your product is priced correctly. The potential market for your product should be large and growing and your brand should have plans to capture that growth. Is there a need for your product in the marketplace? Will people buy it? Do you have an innovation pipeline?
Scalability is important. Can your product be scaled up or down to meet demand? How much will it cost to produce more of your product?
Of great importance is the team behind the product. An investor wants to see a passionate and committed team that is dedicated to making the product a success. They also want to see a team with the skills and experience necessary to bring the product to market. Do your research and put together a strong team that will give investors confidence in your ability to succeed.
Another factor to consider is your go-to-market strategy. How will you get your product into the hands of consumers? Will you sell it online, in stores, or both? What kind of marketing and advertising will you do to raise awareness of your product? An investor will want to see a well-thought-out plan for getting your product into the hands of consumers.
And then consider an exit strategy. An exit strategy is important because it shows that you have a plan for how the investor will get their money back. An exit strategy can involve selling the company, taking it public, or partnering with another company. Investors want to see that you have a plan for how they will get their money back, so be sure to include an exit strategy in your pitch.
If you can answer these questions positively, then you are well on your way to impressing investors and getting the funding you need to bring your innovative product to market! Always do your research on an investor first to make sure their thesis, stage of funding and mission are in alignment to your brand.
Do you have an innovative product that you think is ready for investment or you have an idea that you want to bring to life? We’d love to hear about it! Send us a message and we’ll take a look. We’re always happy to help. :)”
A great source of information and support around this subject is Brandjectory. This is a community-based platform through which early stage food companies can gain access to practical capital. Check it out!