For an idea to be considered fundable, it must possess certain attributes that attract the interest of investors and financial institutions. Here we present 6 essential attributes. We use these 6 Attributes as a framework to evaluate and improve the fundability of ideas, and to make investment decisions.

1. How CONVINCING is the idea?
How good is the idea for solving a problem or introducing a better way of doing something? How unique and how much better is the solution than other ways of doing the same thing?

The persuasiveness of an idea to be financeable depends on several key factors, and there is no single formula. However, crucial aspects can be identified that determine how persuasive a proposal should be.

A fundable idea must be compelling enough to generate confidence in investors. This involves presenting a clear proposition, backed by solid evidence, demonstrating high market potential, and supporting a capable and passionate entrepreneurial team.

2. How EXPANSIVE is the idea?
How big is the market for the idea? Will awareness of the idea spread quickly on its own, or will it require a large investment in marketing?

The expansiveness of an idea to be financeable is not measured solely by its size or geographic reach, but rather by its growth potential and scalability.

The expansiveness of an idea to become financeable is related to its growth and scalability potential, its ability to innovate and differentiate, and the strength of the entrepreneurial team and financial projections.

3. How ADOPTABLE is the idea?
How easy is it to understand? How easy will it be to find, try and buy? Are there switching costs, such as sunk costs or a high learning curve?

The adoptability of an idea to be financeable refers to the ease with which the target market or users can accept and use the innovation. It is not just about having a brilliant idea, but about it being practical, useful, and attractive to those who will consume it.

A fundable idea must be adoptable enough to be seamlessly integrated into users’ lives.

This involves considering compatibility, ease of use, relative advantage, observability, and testability.

4. How ACHIEVABLE is the idea?
Are there any “if only” scenarios for implementing the idea? How viable is the seed and angel plan to build it and prove it appeals to the potential market? How much seed capital is needed to achieve these two major milestones from the angel investor? How driven and smart is the founder?

The achievability of an idea to be fundable is a crucial factor that investors carefully evaluate. It’s not just about having a grand vision, but about showing that that vision can realistically and feasibly be turned into reality.

A fundable idea must be achievable enough to generate confidence in investors. This involves demonstrating technical feasibility, financial realism, the capacity of the entrepreneurial team and solid strategic planning.

5. How PROFITABLE is the idea?
How strong is the business model? Does the business model increase or decrease the compelling and adoptable nature of the idea?

The profitability of an idea to be financeable is a determining factor in attracting investors. There is no magic number, but there is a set of indicators and considerations that influence the perception of profitability.

The profitability of an idea to be financeable depends on a combination of financial, market and operational factors. Investors look for ideas with a high ROI potential, solid profit margins, a scalable business model and a capable entrepreneurial team.

6. How DEFENDABLE is the idea?
How difficult or easy is it for competitors to copy the idea? Is it patentable? Does it create switching costs?

The defensibility of an idea to be fundable refers to its ability to withstand competition and maintain a sustainable advantage in the market. It is not just about having an original idea, but about protecting it and keeping it relevant in the long term.

A fundable idea must be sufficiently defensible to protect its competitive advantage and ensure its long-term sustainability. This involves considering intellectual property, continued innovation, barriers to entry, and the capacity of the entrepreneurial team.