Investors also highlight the product itself as another of the five pillars. To start with, the product needs to be unique and differentiated. Be ready to articulate clearly why that's the case.
They’ll want to know about the key features that make your product unique, along with any new features you plan to add in the future, and why your target audience should care about your product or service. You might also get asked to highlight the key milestones in product development.
If your business revolves around a technology product, investors will want to understand how your tech has a competitive advantage over what’s already out there in the market, how much it’s going to cost to build, and how easy it will be to replicate.
Importantly, delivering a great user experience has become equally key in today’s B2B software as it’s always been in B2C . That means your product needs to be easy to use, with an attractive, streamlined, and intuitive interface.
On top of that, it’s becoming increasingly common for VC investors, such as Notion Capital, to favor SaaS companies that rely on product-led growth instead of sales or marketing-led growth. The product-led growth model drives customer acquisition through the product itself. Zoom and Pipedrive are just two examples of PLG businesses.
In cases like those, customers get immediate value from the product without having to set up huge integrations. All they need to do is sign up with a credit card and the process snowballs from that point onwards. Once the user starts sharing and collaborating, their engagement with the product and subsequent spend on it are likely to increase in tandem.