3 Reasons why Venture Capital Investors don’t want to Invest in Your Idea

​You have a great idea and no capital but no one is willing to pump money into the idea. Why are venture capitalists not buying into the idea? 

​Your idea has no value

​Venture capitalists will only put their money in a project that has promise of return on investment. Your idea may sound great but have no monetary value. For example you have an idea for sun glasses that make the sky look red. They look great but will actually have little value to attract investors.  Your idea could also look like it has no value because you have not taken time to explain it clearly on paper. Try to show how your idea can be turned to financial gain and how long it would take to make gainful returns.

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Your idea is too costly

Many people would like to eat chicken fed exclusively on shrimps from the Mariana trench. It sounds good but what is the cost? A good idea could be too costly to implement such that it is not financially viable. When it gets to the market it could be too expensive to attract a market, or be too noncompetitive to survive in the market.
Always look at similar or almost similar products in the market when designing it. Assess the competition and try looking at what value your idea could add on top of what is on offer. If you have a new product, look for ways to cut down on costs such that the final price is not too high as to be nonviable.

You have a bad team

Your idea is only viable only if your team is competent. Developing an idea into a great product requires a good team, knowledgeable on the market trends, and industry dynamics. Venture capitalists could be shying away from your idea because they don’t have faith in your team to deliver a great product. Your team could be lacking in skills to make the product viable on the market.
Picking the right team to develop your idea involves looking at their technical skills and their understanding of the market the product is meant for. The team must also buy completely into your idea. Potential investors can read the team’s confidence in your product by how well they can explain the concept. Ensure every team member gets the concept and can convincingly explain it.  Always engage professionals in areas that you are not competent.