How VC Investors Evaluate Startups & Why
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VC investors evaluate startups based on four main criteria: market opportunity, team strength, product traction, and risk mitigation. They look for startups addressing huge markets with the potential for $100M or more in annual revenue. They evaluate the strength, experience, and track record of the founding team. Investors want to see real product traction using metrics like acquisitions, activations, revenue, and retention. They seek to mitigate risk by investing in startups with strong execution and a clear path to addressing large markets. The evaluation process typically takes around six months.
How VC Investors Evaluate Startups & Why
- 1. How VC Investors Evaluate Startups (Before Investing 贈1-5m) @fogeldavid
- 2. 6 Years12 Years Head Of Acceleration @Wayrauk
- 6. Talk
- 7. Not Going to Talk about
- 10. 1. Things 2 Consider Before Approaching VCs 2. How do VCs Think & Why Risk Market Team Traction (AARRR)
- 12. 1. Do you Need to Raise from VCs?
- 13. Up to 30%!?
- 15. 2 Make Money
- 16. Dont need Lots of money to Create Great Games 3. Are You What VCs are Looking For?
- 17. This is where VCs Play Source: Startup Genome Report 2012
- 18. 2 Types
- 19. Dont need Lots of money to Create Great Games Vision
- 20. Execution
- 21. Which is Better
- 24. Taking Risks
- 26. Mitigating Risks
- 30. Why?
- 32. 10% $1bn Awesome Execution (After 5 years) Huge Market $100m Potential Annual Revenue
- 33. $100m Annual Revenue $500m Potential Company Valuation 5x Revenue Multiple
- 34. 20% $500m VCs Share of your Company (After 5 years) Potential Company Valuation $100m Potential VC Return
- 36. 10% $1bn Awesome Execution (After 5 years) Huge Market $100m Potential Annual Revenue
- 39. Its all About the Team
- 42. Dont Be This Guy
- 43. Traction
- 44. What is good traction
- 48. Acquisition 1000 100% Referral 70 10%(out of Active) Activation 700 70% Revenue 14 10% Retention (Day 1) 140 20%
- 50. Referral 70 Activation 5,000,000 Revenue 14 Retention (Day 1) 140 Vanity Metrics
- 51. Now What? #2
- 54. Average 6 Months
- 55. There is Always That 1 Guy.
- 56. Long Journey