A recent article from the Harvard Business Review, discussed ‘How Venture Capitalist Make Decisions.
Venture capital has become an essential driver of economic value. The first task a Venture Capitalist faces is connecting with start-ups that are looking for funding—a process known in the industry as “generating deal flow.”
The best deals often comes from a network of trusted investors, entrepreneurs, and professors. Early stage funders tend to be a tight knit group who talk to each other and are quite happy to put a black mark against pitch with which they have been particularly unimpressed.
Early-stage founders who seek angel investors too soon often run into two distinct problems: Premature burnout and insurmountable reputational
Investors do not fund startups without proven products, customers, and technical capabilities already in place.
According to a survey, more than 30% of deals come from leads from Venture Capitalists’ former colleagues or work acquaintances. But what if you do not have that network already set up.
Venture Capitalist reject far more deals than they accept, they can be very aggressive when they spot a company they like
What should you consider?
But, what are the most important factors to consider before your are facing your investors? See our blog ‘ 6 Start-Up Funding Checklist‘