What are the parameters investors look for while trading ?

Mainly they look for:

• Management team: In general, investors will not be looking to take an active part in the running of the business and will leave this to the management team. This is the key to the success of raising money. A well-balanced team that works well together should be able to deal with unexpected events and handle difficult decisions should they arise. Without a quality management team assembled or identified, it will be difficult to convince an investor to subscribe for shares.

• Past performance: A good indicator of how a management team performs is the past performance of the company. As well as the financial history of the company, investors will be keen to see how the management team has performed under different circumstances. In a start up situation with no past performance, the strengths of the management team will be even more crucial. In addition, the investors will review the intellectual property of the business and the barriers to entry in the area being targeted by the team.
• Future performance: As detailed in the business plan and financial projections sent to the investors and their advisers, the future performance will be crucial in convincing investors that the company has the potential to grow and develop. Funders are looking for situations where the company can achieve significant growth which should ultimately lead to an increase in the value of the investment
• Exit: The realisation of the investment needs to be considered from an early stage.
  The management team needs to consider all exit strategies, which will include trade sale or flotation.