Are you an entrepreneur? Invest in the product and yourself.

The basic assumption in the investment world is that those who don't believe in their idea enough to invest their own money in it probably won't invest the effort required for their success.

When an investor considers investing in a start-up company, product, idea, patent, or any initiative, he looks for a number of signs that ensure that his investment will be profitable. One of the most important signs is the commitment of the entrepreneur to the idea.

Here are some reasons why investors prefer entrepreneurs who have invested their own money:

1. Belief in an idea:
An entrepreneur who invested his own money indicates a deep belief in the business idea. This sends the investor a clear message that the entrepreneur is willing to risk his personal money to succeed.

2. High motivation:
An entrepreneur who has invested his own money will usually be more motivated to succeed. He will invest more hours and make extra efforts to bring the idea to fruition.

3. Risk management:
An entrepreneur who has invested his own money has already taken on part of the risk involved in setting up a business. This shows the investor that the entrepreneur understands the risks involved in the investment and is ready to take them on himself.

4. Cooperation and division of labor:
When the entrepreneur invests his own money, he becomes a full partner in the success or failure of the business. This creates a common interest between the entrepreneur and the investor and increases the likelihood of fruitful cooperation.

Additional benefits for the entrepreneur/inventor:

1. Reliability:
Self-investment in a venture gives the entrepreneur greater credibility in the eyes of potential investors.

2. Motivation for building a worthy team:
When the entrepreneur invests his own money, he serves as a role model for the other dedicated team members and increases their motivation to join the venture.

3. Power and improvement of negotiating position:
An entrepreneur who has invested his own money is at an advantage and in a vastly improved situation in negotiations with investors since he can present his personal investment and ask for much more than an entrepreneur who has not invested his own money for development.

To summarize:
The entrepreneur's personal investment is a strong indication and incentive of his commitment to the idea, his motivation to succeed, and the risk he is willing to take. Investors, looking for highly motivated entrepreneurs with a belief in an idea, usually prefer entrepreneurs who have invested their own money.