๐Ÿ“Š ๐—”๐˜€๐˜€๐—ฒ๐˜€๐˜€ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฆ๐˜๐—ฎ๐—ฟ๐˜๐˜‚๐—ฝ'๐˜€ ๐—™๐˜‚๐—ป๐—ฑ๐—ฟ๐—ฎ๐—ถ๐˜€๐—ถ๐—ป๐—ด ๐—ฅ๐—ฒ๐—ฎ๐—ฑ๐—ถ๐—ป๐—ฒ๐˜€๐˜€ ๐Ÿ“Š 8 factors to evaluate your companyโ€™s investability.

The odds of raising funds from a Top VC firm like Andreessen Horowitz is about .7% Source: Corporate Finance Instituteยฎ (CFI)

This statistic may be even lower now, with the current VC funding slowdown.

Before pitching to VCs, make sure your company is perceived as a viable investment opportunity. ๐Ÿ’ก

Here are 8 key elements to measure your startupโ€™s ๐—™๐˜‚๐—ป๐—ฑ๐—ฟ๐—ฎ๐—ถ๐˜€๐—ถ๐—ป๐—ด ๐—ฅ๐—ฒ๐—ฎ๐—ฑ๐—ถ๐—ป๐—ฒ๐˜€๐˜€ from an investorโ€™s perspective ๐Ÿ‘‡

โœ… ๐—ง๐—ฒ๐—ฎ๐—บ โ†’ Do the founders bring an unfair advantage?ย  โ†’ Is there ego risk? (uneven equity split, or seniority gaps) โ†’ Is there Founder-Market Fit?

โœ… ๐——๐—ฒ๐—ฎ๐—น ๐—ฆ๐˜๐—ฟ๐˜‚๐—ฐ๐˜๐˜‚๐—ฟ๐—ฒ โ†’ Is there a messy cap table?ย  โ†’ Is the valuation ๐Ÿ†— according to market?ย  โ†’ Are founders diluting or raising too much?

โœ… ๐—–๐—ผ๐—บ๐—ฝ๐—ฒ๐˜๐—ถ๐˜๐—ถ๐—ผ๐—ป โ†’ What companies and investors are ahead in the game? โ†’ Is there a risk of corporate incumbent entry?ย  โ†’ Is there relevant IP that can be leveraged?

โœ… ๐— ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐˜ ๐—ฆ๐—ถ๐˜‡๐—ฒ โ†’ Is the market large enough for IPO scale?ย  โ†’ Are founders targeting a realistic market capture %?

โœ… ๐—ง๐—ฟ๐—ฎ๐—ฐ๐˜๐—ถ๐—ผ๐—ป โ†’ Is there a functional MVP?ย  โ†’ Are there paying customers? Are they churning quickly?ย  โ†’ Whatโ€™s the fastest-growing distribution channel?

โœ… ๐—ฉ๐—ฎ๐—น๐˜‚๐—ฒ ๐—ฃ๐—ฟ๐—ผ๐—ฝ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐—ผ๐—ป โ†’ Is this a sustainable business model?ย  โ†’ Are profit margins defensible?

โœ… ๐—™๐—ถ๐—ป๐—ฎ๐—ป๐—ฐ๐—ถ๐—ฎ๐—น๐˜€ โ†’ Is there a clear path to monetization or profitability?ย  โ†’ Are there healthy unit economics?

โœ… ๐—˜๐˜…๐—ถ๐˜ ๐—ฆ๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜† โ†’ Are founders thinking about ROI?ย  โ†’ Is their strategy realistic?

If youโ€™re unsure about your startupโ€™s fundraising readiness, I can help you navigate the process.

๐Ÿ”” Follow me for posts on startups, venture capital, and fundraising.

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