Any business investment needs a seed stage investment in order to grow. This’s the startup capital that is required by a business to pay for its startup cost before it launches. This process needs seed investors who gain a share of the business profit in return to their initial startup capital for the investment. Sultan Alhokair is one of such seed investors, and Bloomberg notes that he works hand in hand with Valia Investments, assisting in determining which companies qualify for seed funding.
Below are a couple of fundamental guidelines that Sultan Alhokair follows.
Potential for getting back their seed funding is fundamental. Any seed funding Company wants returns on their investment. Seed funding comes at a price, investors like Alhokair want a return from the companies which they invest in, usually sooner rather than later. A company with a potential to grow and pay back their seed investment, will be in a better position to be more attractive at seed level. One key is a companies compelling story towards success.
A factual storyline from a business company looking for its startup capital is important. This means that the company has done its market research carefully and is ready to present its argument so as to qualify for seed funding. Without a compelling or attractive story, the lack of a seed investor to make it a success will be immediately recognizable through consumer validation.
Before an idea comes to birth, there needs to be an existing proof that the idea would be successful. This means that market research should be carefully carried out to reveal that there is a need in that product. A company seeking for meaningful startup funding, needs to show proof that there’s a legitimate interest in what their offering – viable exit strategies.
Sultan Alhokair seed investors are patient, and they do realize that at times it takes a little longer for a company to get off the ground. However, if things look like they’re not working out, it is crucial to have a viable exit plan for the investor. An investor has put their finances in a company, so having a way they can pull out, and not leave an investment crumbling is one of the good attributes about Sultan Alhokair.
These are some of the fundamental tips that Sultan Alhokair and Valia Investments look for before seed funding a company. Sultan Alhokair makes these kinds of decisions on a daily basis.