What Is Most Important To A VC When Investing?

What weight to different factors have in a Venture Capitalists decision to invest in your start-up company?

New research suggests the following:

30.4% – Potential Return

27% – Founders’ Experience

26.4% – Market Readiness

6.6% – Regulatory Exposure

6.4% – Social Connection with Founders

3.2% – Lead investor

…best get networking perhaps; but the potential return is still the most important, so practice your sales skills at the same time.

Above all? Make sure you’re going for a big market and have your numbers in a row to prove the zillions you’re going to make out of it.

Ironically, other data demonstrates pretty clearly that VC’s should not invest in Founders who have had a successful exit before. In fact statistically, they are less likely to provide the investor a return, than someone who has not had a big exit before.

 

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