9 out of 10 startups die on the way to the goal. Let's consider the main reasons

Most startups don't get the funding and development they need. Investors are demanding.

And yet this is not a reason to give up the opportunity to promote your idea. Airbnb founder and CEO Brian Chesky got bounced by investors dozens of times. Jason Schuman of Corigin Ventures has put together an entire library of investor rejections.

In 2019, analytical company CB Insights conducted a study of 101 failed startups. The most common reasons for failure were:

1) the product was not in demand on the market (42%);
2) funds for development have run out (29%);
3) serious mistakes were made in the selection of the team (23%).

Based on our research, we've prepared tips for packaging your startup.

Achieve product maturity
The investor wants to see the technology already working. You need to achieve at least TRL 4 (Technology Readiness Level). This assumes that the project already has a workable mock-up of the solution, which can be used to demonstrate the workability of each of the ideas used.

Fully document the solution
A complete set of technical documentation should be behind the description of an innovative layout or MVP. Investors look to outside experts to assess the feasibility of an idea, the depth of its engineering, and the socio-economic contribution it can make to its industry.

Conduct a comprehensive market analysis
Investors love it when a project is aimed at a large market that will allow a business to scale. If your team does not have an economist, it is worth ordering such research directly from a consulting company or a reputed industry expert. Figures from open reports of the largest analytical and consulting companies will also look good in the presentation.

Make a financial business model
It is the financial model that will primarily interest the investor. In order to take into account all the current market factors, the competitive field, current trends, you will almost certainly need an invited specialized expert with extensive experience in this particular area. The investor team will review all conclusions that will be reflected in the calculation. Therefore, it is important that a professional of the same level previously worked for you in this matter.

Conduct an objective assessment of the team
Consider the simplest case: a startup team consists of two founders, one of whom is responsible for the technical part of the project, the other for the business. What will the investor look at?
He will evaluate the "engineer" from the point of view of his competencies. Has he done such things before, has he achieved any success, has he demonstrated his creative potential?
The situation is about the same with the "entrepreneur".

Become a part of the "get-together"
Even at the stage of idea and basic development of the project, it is very useful to participate in various startup activities, development programs, business accelerators etc. You will see other projects, study their ideas and strategies, and you will surely meet different industry experts who will later help you in preparing your investment presentation.

Create and perfect a one-minute presentation
A well-known case was when Sergey Brin and Larry Page, founders of Google, were able to convince Andy Bechtolsheim to invest in their project during an elevator ride. Since then, the concept of elevator pitch has appeared in venture - this is a story about the essence of the project, which should convince an investor to invest in a time within one minute. It should be developed along with the project, reflecting the best and most intriguing that you have at the moment. However, it should be understandable even for those who are not experts in your topic. You will need such a description more than once or twice.

If you get serious about startup packaging and can convince an investor with numbers and meticulous design, your startup will be one of the lucky 10%.