Whether you're launching a new startup or transitioning from R&D to commercialization, several key components are required: investment capital, strong partners, industry expertise, a marketing and communications plan, and a refined business development strategy.
For this entry, I'll be focused on the best kind of investment capital for a startup or a company transitioning to commercialization.
Investment capital can come from several sources: friends and family (the most common source, but often the least substantial), angel investors, private equity, and venture capital pools / funds. Each of the aforementioned investment groups come with their own unique set of pros and cons. Because of this, entrepreneurs need to understand that any cash for equity they accept in the early days should be the start of an ongoing relationship—one that adds value to their venture.
The Ideal Investor: Value-add
It doesn’t matter if your early investors are family members, friends, angel investors, or venture capitalists. The most important thing is that they add value to your growth objectives.
A value-add investor is someone who can provide more than just investment capital. They’re someone who has “been there and done that”. They’ve been an entrepreneur, raised funds, discovered innovative concepts, and / or helped turn ideas into successful businesses.
At Maximus, we aim to be a value-add investor for every company we support—whether that means opening critical doors within your industry, broadening your audience, refining your marketing plan, or simply brainstorming on the back of a napkin.
What Are We Looking For?
We take chances on bold, innovative, team-oriented entrepreneurs that operate with intention and are amongst the first movers in their space.