So the question is, what are investors looking for? And this is actually a pretty simple answer. Investors are looking for our RSA. So what is our RSA?. RSA stands for revenue, scalability, and alignment.
First, they want to see that your startup is already making revenue. If it's making revenue, then it signals that your startup has found product-market fit and it becomes a less risky investment foreign investor. Then they also wanna see that there's some level of scalability. If the entire business depends on a single person, for example, in that person's time, then that person's time is very limited. And that is not a scalable business.
So they look for opportunities for where it is scalable. It doesn't have to be scalable at the moment, but if there is an opportunity to automate a process then that definitely helps, and finally, they look for alignment. Most investors savvy investors, I should say, aren't going to invest in something that they really don't know, and most investors will invest in something when it actually makes sense. There's actually some level of alignment.
Maybe they know the business or they know some way to move your product or some way to open up doors? Who knows? But those are the three things that an investor looks at, whether they know it or they don't. But they look at RSA: revenue, scalability, and alignment. I'll see you guys on the next episode.
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