Shopline closed a US$1.2 million seed funding round earlier this year.
The Hong Kong-based start-up, which offers online tools for e-vendors, is sharing a few tips with fellow young entrepreneurs on how to attract the attention of investors.
First, it helps to show investors what you have done — achieve something before asking for money.
“You need to have a product and some customers,” the company told the media.
“You also need to have a good idea of the amount of capital you need and the planned usage.”
Shopline claims to have more than 15,000 merchants on its platform, Tech in Asia reported.
The funds raised will be spent on marketing and adding headcount.
Secondly, choose an appropriate target market.
Hong Kong is too small and may not be interesting enough for investors.
“Aim higher; target the regional markets,” Shopline said.
“The bigger the potential of your business, the more investors will be drawn to the probable returns.”
Shopline started with Hong Kong and Taiwan and is now eyeing Southeast Asia.
Thirdly, the management team and proper division of labor is another thing investors care about.
It’s hard to expect the IT guy to help with marketing, while the latter most probably won’t be able to write programs, said the firm’s co-founder, Raymond Yip.
“For a business to run smoothly, we need to find the ‘parts’ and put them together,” he said.
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