‘’Money matters’’ we have all heard this phrase, especially in terms of start-ups and their first break in market. The concept of seed money is not very old in this part of the country, but it is making a serious entry into the market. Here is what Funding expert and Investment Director at JEL Capital, Noah Stone, had to say about why they are seeding again and what does it take to qualify.
Noah said that seed money is making an impact and attracting investors because this type of investment offers lofty returns with lower cash outlay. According to him, the most important factor for getting seed money in any start-up is the team behind the idea. An idea is important but so is the ability to speak the language of investors. But neither carries as much weight on its own as much as having the right people on your team to carry the idea and taking the startup to the finish line.
Here are few questions to ask yourself; regarding your team before pitching for seed funding:
1-Does your team have a real commitment to the idea? Are they determined and ambitious to make this startup succeed?
2-Is your team flexible? Are they willing to compromise, go with the flow, listen and apply change as necessary?
3-Is your team full time or willing to be full time?
4-Is your team willing to go where the money is?
In the end, Noah pointed out that while an excellent idea is crucial, the real key factor is an experienced team that has passion, ambition, determination and is fully committed to the idea. The team must be prepared to work full-time and believe that the opportunity cost is too high to not give it their all in speeding to the market.