How to spot a good investment opportunity

How to spot a good investment opportunity

If you're considering investing in us and need some guidance of what you should be looking out for, we've got you covered. For total confidence throughout the investment process, Michelle Wilk, Investor at Founders Factory, shares her 3 top tips for spotting a good investment opportunity!

First, look at the community. 

Exhale community

You can measure a start ups potential by gauging how their community feel about the brand or service. You want to be asking yourself:

Would consumers tell their friends about this? (referral rate)

Are they coming back again and again? (repeat rate, retention rate)

Are they spending money when they do? (conversion rate, basket size)

Do they ultimately have a good experience (online reviews).

Then, their team

Exhale team

The founding team of a company plays a core part at any stage of investing, but especially in early stages! Consider a brands team, and ask think about:

Do the founders have the motivation, past experience or a first-hand understanding of the pain point they’re solving?

Do the founders complement each other and fill each others’ blind spots?

Are they commercial and can they sell their vision to new hires and future investors alike?

Lastly, consider their future potential

As an investor, your contribution of investment can impact how a startup business can grow, so you need to see potential in it. Some questions to measure their potential you could ask are: 

Does this business have the potential to scale fast? Take into account their historical performance as an indicator for future growth, market size and trend, as well as their business model 

Take a look at the competitor landscape. Is this business in a white space, or taking a new angle, or will they constantly be fighting to win over consumers from their competitors?

Exhale Coffee Revenue growth since launch

If the business you want to invest in (e.g. Exhale!) checks off all the right boxes, it’s a sure way of measuring if it’s a good investment opportunity. Make sure you read through our Seedrs platform page, where you can learn all about our team, future plans and community, and decide whether you want to be part of the movement and invest in us.

View our Crowdfunding page

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future. Seedrs does not make investment recommendations to you and any investment decision should be made on the basis of the full campaign. No communications from Seedrs, through email or any other medium, should be construed as an investment recommendation.

This blog has been approved as a financial promotion by Seedrs Limited.

Seedrs Limited is authorised and regulated by the Financial Conduct Authority. Seedrs Limited is a limited company, registered in England and Wales (No. 06848016), with registered office at Churchill House, 142-146 Old Street, London EC1V 9BW.

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