This article is mainly for Entrepreneurs who need to determine what type of investor they should look for if they need to raise money. But that answer depends on what stage your current startup is at?
So lets not waste time and dive into the topic. The different stages are
Now discuss each of them a little bit.
Idea : This is the stage where you just had an idea and you think it can be a profitable business
Confirmation: You just discussed this idea with some potential customer. And they confirm that they have a need that can be satisfied by the product idea you have .
Creation : After you get the confirmation, you went ahead and created a prototype or MVP(Minimal Viable Product).
Validation :You show it to a potential Customer . And he/she likes the experience and wants to buy it or bought it . That means you are in validation stage.
Repeatability: If you can convince more than 1 Customer to buy your prototype, then you are in the Repeatability Stage. It also shows there is a broader market for your product out there.
Scalability: At this stage , you have to demonstrate that you can concurrently serve many customer with your product. This also shows your business is really valuable.
Profitability: You must be asking, why I haven’t mentioned about profitability yet. Most of times , you would like to get to the scalability stage and then figure out how to tweak your business to turn into a profitability. If you can make it profitable, you are in the Profitability stage. Most of the startup cannot reach this stage and eventually fails.
Predictable : After the profitability stage , you must be working on new products and creating strategy to diversify and get more customer. By this time you are already a giant.
How if you are looking for raising fund , you should target investor accordingly.