Amazon has total dominance in the e-commerce sector, it is crystal clear that either local competitors or new, unique approaches and innovative technologies are absolutely welcomed on the market by the consumers. Since 2018, there is a never-before-seen financial abundance for startups, which inspires a whole new generation of entrepreneurs to realize their ideas. Many entrepreneurs are learning the hard way how to approach an investor. Let’s see the must-haves!
Ingredients
There is a common, wide-spread misunderstanding about financing ideas: entrepreneurs think that it is happening. Yes, there are indeed a few cases, but you shouldn’t bet on it. It is reserved for founders with extremely strong social proof: people who have already created more than one profitable company and they can prove that their idea is indeed working. And, of course, there are inventors, who get money on their ideas and plans, but it is more common for projects that require investment to get started.
The key to a successful negotiation with an e-commerce investor is to arrive prepared. What is going to be asked?
- What makes your platform or marketplace unique? There is nothing wrong with creating a local clone of a highly successful global player, but you must have really good connections and market knowledge to pull that off.
- Why you? You need to have the right people for this project, who are 120% dedicated, qualified and have major experience in their field.
- What is the proof of concept? For an e-commerce startup, the answer is pretty easy. Can you make revenue? If not, then it is probably not the best time to approach an investor.
- What’s the pitch? Many first-time entrepreneurs confuse pitching as the most important part, and as it may open some doors, if the other requirements are there, investors will be flexible with this one.
Eterna Ventures, a specialist in e-commerce
Eterna Ventures is a boutique venture capital firm with a special focus that is even unique to this sector: they fund companies and startups’ paid online advertising campaigns. Looking for companies that meet the above criteria, EV has award-winning experience in handling e-commerce campaigns to accelerate the growth stage.
While other investors may fund building a team, Eterna’s team believes in what they know and do best, multiplying revenue growth through Facebook and Google advertisements and a network of social media influencers. The team’s wide network is also at the founders’ disposal to guide and mentor them during the process.
Eterna Venture’s policy is to invest only a few times a year, aiming for a 10-fold multiplication of the annual revenue of their investments by leveraging the power of paid online advertising.
