Esports Funding Guide – typical mistakes when talking to investors
Talking to angel investors and trying to land a seed investment could be the way you want to fund your goals. Based on interviews with IPO Capital and a few other investors, here are the main mistakes esports teams and organizations made when talking to investors that led them to fail.
IPO Capital invest capital as well as provide access to strategic human resources to cash-flow positive Nordic businesses. Their primary focus is on family or founder owned businesses that could benefit from a generational change of ownership whereby they provide an exit strategy to the current shareholders and serve as the new stewards that care for the business and preserve the founder’s life’s work.
Lack of synergy in the team
Who are you, what have you done, how dedicated is your team, and what will you do together that no one else can?
Lack of unique profiling and storytelling
Why is your project unique and how do you differentiate from everyone else doing almost exact the same thing? Why invest in your project?
Lack of clear business plan
How do you make money? Where is the business opportunity and how will you grow the business?
Lack of measurement
Which metrics can investors use to measure the investment and the growth of the project?
Lack of risk management
How likely is it that the investor gets their investment back?
Lack of vision
Where is your project in 3-5 years?
Lack of tactics
What goals will you achieve in the next 2-3 years?
Lack of operations
How will you reach your goals over the next 1-2 years?
Working closely with an investor could be an idea, but they vary from project to project.