How startups can attract investors: Insights from Alexey Bashkirov

Alexey Bashkirov, a private investor and founder of the Donum charitable initiative, shared his experience and key insights on how startups can capture the attention and trust of investors. In the world of startups, particularly in the tech sector, securing investment can be a crucial factor for growth and success. Founders of young companies not only need to develop unique products but also must effectively present their ideas to potential investors.

The business plan as the foundation for success

One of the biggest challenges for early-stage startups is their inability to accurately forecast expenses and revenues. This highlights the importance of a well-structured business plan that considers several key factors.

First, many startups aim for aggressive growth, rapidly hiring employees and striving for quick scaling. However, this approach is not always justified, especially when access to capital is limited. Investors appreciate realistic plans that prioritize steady, sustainable growth over unchecked expansion.

Second, a business plan is not just an internal document—it is also a communication tool for investors. Understanding the economics of the product and forecasting cash flows helps set clear expectations and build trust. Even a rough financial projection can help manage investor expectations, notes Bashkirov.

Finally, a business plan serves as a tool for self-discipline within the team. It acts as a “reality check,” ensuring that the startup stays on track and can quickly adjust its strategy when needed. Knowing when and how much capital will be required for further growth—as well as identifying which channels or products are underperforming—is critical for long-term success.

The role of the founding team

The composition of the founding team is another crucial factor for investors. Successful startups often bring together two key competencies: "visionary/sales" and "operations/analytics."

The first team member should be a leader capable of representing the company publicly, engaging with investors, partners, and customers. This individual drives innovation, product development, sales, and marketing.

The second member acts as the operational manager or analyst, responsible for executing ambitious plans, overseeing daily operations, managing hiring processes, and ensuring timely product development.

In many startups, one of these skill sets tends to be stronger than the other. However, to attract investors, it is essential to have a well-balanced team that can operate effectively in both areas. According to Alexey Bashkirov, startups that possess these two core competencies—regardless of how they are distributed within the team—tend to achieve greater success.

What matters most to early-stage investors?

At the initial stages of a startup, when financial metrics are not yet reliable indicators of business stability, investors focus on several key factors.

First and foremost, they evaluate the quality of the founder and the team. A founder with prior experience in building successful businesses significantly reduces investment risks. Entrepreneurs who have already navigated challenges such as business growth, product launches, and market entry are often better equipped to handle obstacles. Moreover, experienced founders tend to have valuable industry connections and a proven ability to secure additional funding.

According to Bashkirov, adaptability and flexibility are equally important. Startups frequently encounter unexpected challenges, making it crucial for the team to adjust its strategy in response to changing market conditions. Investors highly value resilience and the ability to learn from mistakes.

Additionally, a strong technological and market vision plays a key role. Investors assess how well the team understands both the market and the technology they are working with. A successful startup should not only solve current problems but also anticipate market trends in the coming years. This foresight significantly influences investment decisions, Bashkirov explains.

Conclusion

Building a successful tech startup requires more than just innovation—it demands the right strategy, a well-crafted business plan, and a competent team. To attract investors, startups must demonstrate not only ambitious goals but also the ability to plan effectively, manage resources wisely, and adapt to changes.

As a private investor, Alexey Bashkirov consistently looks for startups that strike a balance between ambition and realism, vision and operational execution. Teams that master this balance stand the best chance of thriving in a competitive market.