๐ ๐๐๐๐ฒ๐๐ ๐๐ผ๐๐ฟ ๐ฆ๐๐ฎ๐ฟ๐๐๐ฝ'๐ ๐๐๐ป๐ฑ๐ฟ๐ฎ๐ถ๐๐ถ๐ป๐ด ๐ฅ๐ฒ๐ฎ๐ฑ๐ถ๐ป๐ฒ๐๐ ๐ 8 factors to evaluate your companyโs 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. ๐ก
Here are 8 key elements to measure your startupโs ๐๐๐ป๐ฑ๐ฟ๐ฎ๐ถ๐๐ถ๐ป๐ด ๐ฅ๐ฒ๐ฎ๐ฑ๐ถ๐ป๐ฒ๐๐ from an investorโs perspective ๐
โ ๐ง๐ฒ๐ฎ๐บ 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?
โ ๐๐ฒ๐ฎ๐น ๐ฆ๐๐ฟ๐๐ฐ๐๐๐ฟ๐ฒ โ Is there a messy cap table?ย โ Is the valuation ๐ according to market?ย โ Are founders diluting or raising too much?
โ ๐๐ผ๐บ๐ฝ๐ฒ๐๐ถ๐๐ถ๐ผ๐ป 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?
โ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฆ๐ถ๐๐ฒ โ Is the market large enough for IPO scale?ย โ Are founders targeting a realistic market capture %?
โ ๐ง๐ฟ๐ฎ๐ฐ๐๐ถ๐ผ๐ป โ Is there a functional MVP?ย โ Are there paying customers? Are they churning quickly?ย โ Whatโs the fastest-growing distribution channel?
โ ๐ฉ๐ฎ๐น๐๐ฒ ๐ฃ๐ฟ๐ผ๐ฝ๐ผ๐๐ถ๐๐ถ๐ผ๐ป โ Is this a sustainable business model?ย โ Are profit margins defensible?
โ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น๐ โ Is there a clear path to monetization or profitability?ย โ Are there healthy unit economics?
โ ๐๐ ๐ถ๐ ๐ฆ๐๐ฟ๐ฎ๐๐ฒ๐ด๐ โ Are founders thinking about ROI?ย โ Is their strategy realistic?
If youโre unsure about your startupโs fundraising readiness, I can help you navigate the process.
๐ Follow me for posts on startups, venture capital, and fundraising.
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