Understanding VC Investment

How to pitch to a venture capitalist: Market + Management + Model + Momentum

By John Mathews
In: Startups
Jun 09 2017

I attended the Lisbon Investment Summit in June and wrote about my experiences here. One of the best sessions was with Boris Golden called “Understand Investment”. These are my notes:

  1. VC’s are seeking to identify high-potential startups, and then support and fund them.
  2. They are looking for something that is innovative and unproven.
  3. A startup is not a company but an organisation searching for a business model,
  4. Whilst executing and discovering a scalable way to grow.
  5. Startups need money for ambitious but credible growth plans.
  6. A typical stake for a VC could be roughly 20%.
  7. VC’s want an exit price of at least 100m, otherwise their business models don’t work out.
  8. $10m can seem a lot for a founder with a 30% stake, but it’s not enough to attract VCs, so aim higher.

How to pitch

Market

Management

Model

Momentum


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