Everyone heard the good news Wednesday when Auction.com landed a $50 million capital investment from an investments division within Google.
Google Capital adds its name to a list of shareholders in Auction.com that also includes Starwood Capital Group, Starwood Property Trust and Stone Point Capital and funds managed by affiliates of Fortress Investment Group. Auction.com annually handles tens of thousands of transactions across commercial and residential real estate for customers ranging from the largest financial institutions to individuals and brokers.
Jake Seid, president of Auction.com gives his advice for entrepreneurs on what they should be thinking about when they go to raise capital.
Here are his three tips for trying to raise capital for your company:
1. Consider Market Size
“Make sure you’re going after a meaningful market, where the total available is a billion [dollars] or more to be had over time. Markets that are smaller make it harder to get investors because they see a limited upside for the risk,” Seid said.
2. The Right Team
“Make sure you are fielding a team that has the core skills set for the opportunity you are going after and be honest and pragmatic about where they need to complement each other and what their strengths and weaknesses are.”
3. Clear Differentiation
Make sure there is a Unique Selling Point to differeniate your products clearly from the competition. “You need to make sure you have a significant advantage for the startup product and make sure there is a true innovation brought to the table.”