Mezy offers startup valuation reports to private investors looking to get in on the ground floor of something big. Startups represent unique business opportunities that not only offer ROI potential, but also the opportunity to help guide new companies from their earliest days. But as with all things investing, putting money into a startup requires proper due diligence.
Due diligence is the entire purpose behind a Mezy startup valuation report. Our report could actually end up being the one tool that gives an investor the clearest picture possible. It can reveal solid reasons to invest in a startup. Below are just six of them. There are many more.
1. An Opportunity to Disrupt
Over the last 5 to 10 years, there has been a heavy emphasis on disruptive business opportunities. If you are not sure what this means, just take a look at companies like Uber and Lyft. When they were still in startup mode, they were embracing a business model they believed could disrupt the livery industry. They were right. The rideshare economy, now worth millions, has turned livery on its head.
There are times when a startup offers the opportunity to disrupt an established industry. And sometimes, those opportunities are too good to pass up. Succeeding as an industry disruptor can pay off big in the long run.
2. Built-In Scalability
Plenty of startups struggle after the first year or two because their original founders didn’t plan for scalability. When the time comes, they do not have the resources or the talent. On the other hand, a startup with scalability built in is ready to respond whenever the need arises. Investors find this attractive.
Built-in scalability goes a long way toward determining long-term health. A company ready to go at a moment’s notice has a better chance of creating the ROI investors are looking for.
3. A Sound Business Model
It is no secret that investors are more willing to put their money into startups with sound business models. A sound business model sells itself. It lets investors know that the entrepreneurs looking for investments actually have a plan for success. That is attractive from an ROI standpoint.
4. A Competent Management Team
There are times investors look at startups mainly based on their management teams. They might have experience with previous startups involving some of the same people. And even if not, a successful management team with a proven track record could still be enough to convince investors that their new venture is worth a look.
5. An Opportunity for Something Different
As odd as it may sound, expert investors often turn to startups as a way to diversify. They want to get into something different. They want to try their hand at a new industry. Startups are great opportunities to try new things without getting in too deeply. If things don’t work out, it’s a lesson learned. But if they do, a successful startup can open the door to a whole new set of investment opportunities.
6. Potential ROI
In the end, the most important reason for investing in a startup is ROI. Where there is little hope for a decent ROI, investors tend to walk away. The opposite is also true. Investors are attracted to opportunities with strong ROI potential. The trick with startups is determining just what that potential is.
If startups interest you, contact us to learn more about our startup valuation reports. Remember that there are very good reasons for looking at startups. They may not be your cup of tea. But then again, maybe that’s only because you haven’t tasted it yet.