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
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