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. 

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

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?

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.

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