Mike Rogers made a great post on LinkedIn about the six things that matter most to venture capitalists when deciding on an investment.
You will need to nail all six of these to have a chance at landing venture capital. Experts estimate that venture capitalists fund as few as 1 percent of deals that they look at, so make sure yours has the best chance of making the cut!
The 6 Ts were very interesting and I did not realize that timing was so important to everything and how if the timing is off you may fail. The second important one is how big of a market is there.
I follow Mike Rogers on LinkedIn for this type of post for motivation and knowing key factors to being successful in this day in age. He talks about the six things that matter to venture capitalist and how to get there by using and nailing them down to landing venture capital one day; which is powerful to use for your personal gains.
I knew that the traction a venture has and its ability to maintain a competitive advantage were important to VCs, but I don’t think I quite understood how important the team was as well. It makes sense, though, that VCs would want to make sure that the leaders of the venture are able to lead well and manage the money and the company well. And without the right people on the team, it would be incredibly hard to convince an investor to back them up.
Understanding what venture capitalists look for is beneficial. Whether seeking funding or not, these six factors are important to consider when forming a business model because they are likely a predictor of the business’ equity.