What do VC’s really want? Well, it’s explained in this [infographic]



This is a great infographic which outlines what Jeff Clavier of SoftTech VC looks for in a startup. Clavier invested in some startups that might have heard of, like Mint (Intuit), Truveo (AOL), Userplane (AOL), Eventbrite and Fab.

To sum it up, he says, he uses a “three asses” rule: smartass team, kickass product and bigass market. But there’s a little bit more to it, and while the infographic may not look very poppy, if you take the time to look at it, you’ll find a few very valuable insights in the VC’s mind.

For one, it gives some ballpark annual revenue that a VC has in mind when he’s looking at investments.

You have an enterprise/SaaS startup? Convince him that you can make $ 10 to 50 million in the next three years. In B2C, you better have a clear roadmap of how you will reach 10 to 100 million users in the next three years. (Turns out 10 million really is the new 1 million).

There’s also a handy cheat sheet for how long your money will last. Bootstrapping lasts forever (you should consider it). Seed money (that’s Silicon Valley seed money, meaning 1 to 1,5 million) will last 12 to 18 months. A Series A should serve to get you at those 3 year milestones.

Let us know what you think of it:

Photo: Leweb, Flickr

Powered by Facebook Comments

About the author

Raf Weverbergh

Editor of whiteboard. Raf Weverbergh was a magazine journalist whose work appeared in magazines like Rolling Stone, Playboy, Mail on Sunday, Publico and South China Morning Post. He is the co-founder of FINN, a corporate communications agency where he advises startups and multinationals on their PR and Mustr, the easiest media database for PR professionals. You can contact him on Twitter, Linkedin or Skype (rafweverbergh).

Related Posts