What Factors Help to Attract Investors to New Companies?

When it comes to investment opportunities there are a variety of things that you will want to consider.  So, what are the investment fundamentals that help to attract new shareholders?  Most of the fundamentals have something to do with the operations of the company, and some of the others may have to do more with the conditions of the current market.  There are both positive and negative investment fundamentals to consider.

When it comes to attracting investors, it is definitely good if your business has more positive investment fundamentals than negative.  These factors are usually noticed within the business plan and executive summary, and sometimes from presentations given by the business.

Here are a few of the positive fundamentals that you will want to consider:

  • Information technology solutions when applied to business is definitely something that investors look for.  This is due largely to the fact that there is a really high demand for innovation.  Profit margins for businesses that are highly innovative are usually higher than other industries.  Investors find it attractive because they see a higher projected revenue and growth for the company.
  • Investors will usually not want to invest in a business that does not have a good exit plan in place.  This is because they don’t make much money until the company is either sold or goes public.  Investors really want to see a great exit plan.
  • Investors are also really attracted to businesses that conduct business on a global platform.  When a business is larger based, there is a higher chance that the company will be able to gain market share.  Companies will want to make sure that they can prove that they have a large market size in order to attract larger investors.

Companies that have patented their innovations are at a higher advantage than those that have not.  Patents can be beneficial in other ways as well, as they are an added value to the company.