INVESTOR CRITERIA: While working with so many Venture Capital investors over the past years, we recognized that there are some standard investment criteria which are on their check-list. Founders and Startups looking for capital should be aware of them. They are:
TEAM
VCs look for:
- Complimentary skill-sets
- Strong values
- High motivation
- Diversity
- Personal chemistry
VCs don’t like:
- Incomplete teams
- Inflated egos
- Single founders
- Little to no tech expertise (depends on business)
- Uniformity
EQUITY STORY
VCs look for:
- Disruptive solutions
- Strong value proposition
- High entry hurdles for competitors / followers
- Large markets
- Big visions
VCs don’t like:
- Crowded markets
- Small ambitions
- Indefensible solutions
- Weak USPs
TRACTION
VCs look for:
- Solid Go-To-Market (GMT) strategy
- Strong customer validation (proof of concept)
- Recurring revenues (quality > quantity)
- Positive unit economies
VCs don’t like:
- Unengaged customers / users
- Capital inefficiencies
- Pre-mature scaling, e. g. lose sight of your mission, hire too many people too early
TIMING
VCs look for:
- Teams ready to scale
- Clear investment plans
- Market readiness
- Answers to “Why now”
VCs don’t like:
- Highly diluted founders
- Imbalanced cap tables
- Strategic investors
In case you need help or have further questions, please don’t hesitate to contact us. Info@incubain.com