Published on May 15th, 2013 | by Jose Vasquez0
Richard Branson’s Advice on Funding Startup Tech Companies
Startup tech companies learn best from successes that came before them.
Entrepreneur Richard Branson is a major icon in the business world, and he’s always looking to help similarly adventurous entrepreneurs get their ideas moving. Branson explains the most important factors for getting startup tech companies funded, summing up the five key qualities you need to convince an investor your company is worthwhile.
- Your company’s solution needs to be smart and simple, and it needs to improve people’s lives for the better. The best ideas in the world of startup tech companies are the ones that are simultaneously brilliant and basic—and no investor will put down cash for something that doesn’t make life easier for someone.
- Your company’s technology needs to be disruptive. It can’t just be something that already exists with an extra touch of flair—it should truly be unique.
- You have to give people broad choices and easy access. Your technology can’t be too limited, and it has to be easy to find and use if it’s going to stand a chance of getting funded.
- The experience needs to be shareable. When your customers use your product or service, they have to be able to tell people about it. This is more important now than ever.
- Is your business responsible? Corporate Social Responsibility isn’t the first thing people think of when analyzing their startup tech ideas, but it’s important that you have a strong reputation and a certain ethical appeal when you go out seeking funding.
As the founder and chairman of Virgin Group, comprising in excess of 400 companies, Branson is well known for his risk-taking mentality and natural savvy for business. These fundamental ideas help him filter out the weak startup tech ideas from the ones worth pursuing, and as a startup tech entrepreneur you’d be wise to follow his advice.
These principles aren’t just Branson’s individual opinion; they are critical elements for any successful startup tech company. If your idea is lacking in any of these areas, do not be afraid to reimagine it, or scrap it altogether and build from the ground floor. Billionaires aren’t often the product of luck—they pay close attention to basic principles, work hard, and aren’t afraid to take the necessary risks to succeed.
Read Richard Branson’s article, “Richard Branson on Convincing Investors to Fund Your Tech Startup”