Market research not only informs the founder about the industry and how to build a startup.

It also informs the investor about making an investment into that startup.

Market research answers the questions investors will pose to startups such as the following: How big is the market and what are the most profitable market sectors to pursue? Who are the competitors and how are you different from them? What do the current customers think about the competitors? Use the market research to convince the investors to fund your startup.

Here are some key steps to follow: After researching the market, build a slide deck showing the results of the market research in full.

Describe in detail the size, growth rate, sectors, and composition of the market. 

Show the current industry trends and state of technology.

Highlight the next generation of technology coming up.

Show the current competitors with their strengths and weaknesses.

Show the current distribution channels used in the industry and upcoming new ones.

Identify your target sector in the market and show how your company fits in.

Describe the product you are going to build.

Contact investors and indicate you have been researching a market segment.

Offer to share the results with them without any ask of them.

Investors find cogent, concise market research interesting as it informs them about the industry.

Show them the presentation and ask permission to keep them informed. 

When it comes time to raise funding, you’ll have a group of investors educated about your market and your approach to it.  

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.