Alexander Bachmann, the Founder and CEO of Mitgo, is at the forefront of the booming global startup scene, with a staggering 5.5 million new business applications filed in 2023. However, despite the influx of startups, only a fraction of them manage to survive in the long term. Mitgo aims to support businesses in navigating the challenges of launching and growing a new project through value-added partnerships that help them break into global markets.
One key lesson that Mitgo has learned is the importance of proactively seeking out new projects. Waiting for opportunities to come to you is not enough; you have to actively search for them. By identifying potential projects through various channels and proposing investment partnerships, companies like Mitgo can find the right projects for their business. Standing out in a competitive market requires persistence, purposefulness, and a proactive approach to gaining visibility.
Setting benchmarks for selecting partners is another crucial aspect of successful investment partnerships. By defining must-haves and filtering out unsuitable projects, companies can focus on those with the most potential for success. Knowing investor criteria can also guide project owners in shaping their projects to meet these standards, increasing their chances of securing investment.
Investing in a profitable product is essential for a successful partnership. Ensuring that the product has the potential to sell well and gain market traction is key. Building a mutually beneficial relationship where both parties benefit from a profitable income source is the ultimate goal of investment partnerships. Effective partnerships go beyond just financial investment and also focus on helping the project grow through industry expertise, business strategy, and networking opportunities.
Finding and solving real challenges is another critical aspect of successful investment partnerships. Understanding the obstacles that prevent a project from scaling and deploying funds effectively can lead to optimal assistance strategies. Utilizing tools like the HADI cycle and YCombinator SAFE templates can help guide companies in supporting their partners in the most effective way possible.
Building long-term partnerships based on transparency, openness, and mutual trust is crucial for successful investment relationships. Respecting the vision and autonomy of partners while providing expertise and resources to help them thrive is key. While not all investments may be successful, the practical insights gained from experience can guide companies towards more successful partnerships in the future. By following these tips, businesses can reduce risks and confidently partner with promising ventures in the startup ecosystem.
