Risk & Compliance

Startup Investability Series

Tom Counsell

1 minute read

Assessing Your Industry

Your diligence to watch and review the risks you face and your compliance with market regulations helps to remove stress for you and your investors. Another way to look at this is thinking, “how can we minimize the scary factor”.

Both AirBnb and Uber were hardly investable early on because most everyone believed that strangers would not trust each other enough to ride in each others cars and sleep in each other’s extra bedrooms. Additionally, they operate in environments where hotels are districted and taxi drivers need a taxi license!

Don’t underestimate how much even the smallest amount of risk or fear can be big blockers for investors.

Also, if your business operates in a highly regulated or legal grey area (eg. transportation, food, drugs, securities, etc) you’ll need to seek out investors that have already expressed being comfortable with that industry.

Complete the following sentence to help score your business on it’s Qualitative Value

  • This is legal and trustworthy because …

Complete the following sentences to help score your business on it’s Surviveability

  • In the case of market or regulatory hurdles, we are protecting downside risk by …