Qualified investors looking for promising technology investment opportunities face a lot of obstacles in their quest to realize their objectives. Although a reputable technology investment company such as Fig Tree Capital Ventures can help, it pays to know some of the common red flags that characterize opportunities that you ought to avoid. In the first installment of this two-part series, we looked at the first five technology startup red flags to avoid. Here are the remaining five to complete the list. Read on.
1. No Monetization
A promising or widely used technology counts for nought as an investment opportunity if there is no-one that is willing to pay for it or a feasible plan on how to do so in the near future. Although some companies may prefer growing a large user base before monetizing a product, such as Facebook’s Napster, make sure there is plan in place for such a move. Investing through a reputable technology investment company in the USA helps you cover such bases.
2. Wrong or incomplete team
Startup and Fortune 500 company leaders don’t approach their business the same way as a startup and might possibly be a misfit if they switched roles. You must also avoid investing in an individual; rather, invest in a team as an individual can disappear from the equation for one reason or the other. Technology investment firms take care of such due diligence and make sure that you invest in a solid team, product, and plan.
3. Marginal improvements
A product that offers marginal improvements to existing solutions seldom turn out as anticipated. A product offering to improve user profit margins by 5 percent would make for a great investment if every targeted user adopts it, but this is not always the case. The reality is often that the market will be awash with other products/strategies of a similar nature that offer marginal improvements in one way or the other. This usually makes it difficult for users to integrate them all and the end result is that they often ignore them all.
4. Lack of focus, passion, and persistence
Some techies make the cardinal error of pursuing multiple projects at the same time. This results in a lack of focus because, as they say, ‘A jack of all trades is a master of none’. Equally concerning is a lack of passion about the product in the team, which naturally hinders the project through its ups and downs to ultimate success. The best technology investment company helps you invest in projects run by teams with a persistent mindset.
5. Pressure to invest
Any sort of pressure to invest in a project often betrays the fact that there is something going awry with the project and your investment is meant to rescue the startup. This is not a good point from which to invest as it seldom results in a happy ending. The pressure stops you from figuring out the state of affairs and you run the risk of rushing headlong into disaster without the help of a top technology investment company.
Let Our Experts Guide the Way
Your quest for solid technology investment opportunities ends at Fig Tree Capital Ventures. We are a technology investment company in the USA giving qualified investors access to the most promising investment opportunities in emerging technologies. Find your Advisor today or call us to discuss how we can help you grow your portfolio. You can also call us at (866) 304 9194/(866) 300 2170/(866) 894 7309, or email us at firstname.lastname@example.org to get more information on available technology investment opportunities.