1-Chance, not idea
2-Competitive advantage
3-Team. Why your team is the best to this
4-Timing. Why now
5-Scalability. How big is the market
6-Exit. Who will want buy your company
Description:
Chance, Not Idea: This point emphasizes that a startup opportunity should address a real problem or need in the market, not just be a creative idea. It highlights the importance of solving tangible issues and creating value for potential customers. Investors look for startups that identify genuine opportunities, rather than those with concepts that lack real-world relevance.
Competitive Advantage: Investors are keen to understand what sets the startup apart from existing solutions or competitors. A competitive advantage could be unique features, user experience, scalability, or any other aspect that gives the startup an edge in the market. Demonstrating a clear competitive advantage is crucial for attracting investment.
Team: The team behind a startup is often a critical factor for investors. They want to know who is driving the business and what expertise they bring to the table, and why this is the bes team to do it. A strong, capable team can significantly increase the likelihood of success, making it an essential consideration for potential investors.
Timing: The timing of a startup is crucial. Investors want to know why now is the right moment for the business to thrive. This could be due to changing market dynamics, emerging trends, or other factors that create a window of opportunity. Just having a great idea is not enough; it must be the right idea at the right time.
Scalability: Scalability refers to the startup’s ability to grow and expand rapidly. Investors seek ventures that can reach a broader market and generate substantial returns. Demonstrating a clear plan for scalability, including market size and potential for growth, is essential to attract investment.
Exit Strategy: Investors want to understand how they will eventually realize a return on their investment. The exit strategy outlines the planned route for investors to exit the startup and potentially gain a return on their capital. Whether through acquisition, IPO, or other means, a well-defined exit strategy is crucial for investors’ confidence.
A sample
1 CHANCE, NO IDEA
There are millions of parking spaces in residential buildings in Spain and many of them are empty. I intend to solve the problem of empty parking spaces for sale or rent. Since they are difficult to sell, I assume that they are sold with the home itself or rented except to people who live in the building. And make its owners earn extra money, with something that now only generates expenses.
This model does not exist today, and many large cities in the world have the same problem.
At the user level, you solve the problem of parking during rush hours, how many turns you have to make to park. You don’t know how to generate more profitability and benefit to your properties.
Chance, Not Idea: The startup aims to address the real problem of underutilized parking spaces in residential buildings, presenting a practical solution rather than just an abstract idea.
2COMPETITIVE ADVANTAGE
Reservation flexibility
Wide range of parking spaces, as they are homes, the locations are infinite
Ease of use and user experience with user ratings
Community and feedback
Competitive Advantage: The startup highlights unique selling points, such as reservation flexibility, a wide range of parking spaces within residential buildings, user-friendly features, and community feedback, showcasing a competitive edge.
3TEAM I am alone in the project.
Team: It mentions that the project is currently a one-person endeavor, but for investor conversations, it’s crucial to convey the founder’s relevant experience and expertise.
4TIMING
First, because it is personally my time for this.
Because today, there is a growing demand for innovative and practical parking solutions, especially in congested urban areas. Developing an application that meets this emerging need can be highly relevant and attractive to users.
Although there are already some solutions for renting parking spaces, there is still nothing similar and it is an opportunity.
Timing: The startup underscores that the timing is opportune due to the growing demand for innovative parking solutions, emphasizing the relevance of the startup in the current market.
5SCALABILITY
The parking space rental market may still have significant growth potential, especially as urbanization and traffic congestion increases in many cities.
Sale of additional services (vehicle washing, associating with other companies or oil changes)
Global large city market
Scalability: While not explicitly stated, the potential scalability could be explained further, focusing on the market size and avenues for growth to make it more attractive to investors.
6EXIT
1. Parking and garage management companies: Companies specialized in garage and parking management, such as SP+, LAZ Parking, Impark, ParkWhiz, APCOA Parking, among others, could be interested in expanding their presence in the digital market and acquiring a application that gives them access to an established user base and booking platform.
2. Mobility and transportation platforms: Mobility and transportation companies, such as Uber, Lyft, Didi Chuxing or Grab, that already offer shared transportation services, could be interested in diversifying their offering and providing parking options to their users. Purchasing a parking space rental app could complement your existing services and give you a competitive advantage in the market.
3. Technology and online services companies: Large technology and online services companies, such as Google, Apple, Amazon or Microsoft, which have a wide user base and experience in the development of applications and digital platforms, could be interested in expanding its portfolio of services and entering the parking market. The acquisition of a parking space rental application would allow them to diversify their offer and provide a comprehensive solution to their users.
4. Real estate and urban development companies: Real estate and urban development companies, such as CBRE, JLL, Prologis or Brookfield Asset Management, who have experience developing and managing commercial and residential properties, could see the value of an application parking space rental as a strategic addition to its portfolio of services and as a way to improve the experience of its tenants and residents.
Exit Strategy: The startup hints at potential exit options, such as attracting interest from various types of companies. For investor discussions, providing a more detailed exit strategy would be beneficial.