Yes, we would all like to invest in the next Facebook, Snap, Instagram, but if presented with the business plan at the outset, would you have taken the plunge?
I think VC is as much about gut feel as it is about rigorous investment criteria. In fact, many very successful VCs will tell you that they've turned down investments in some of the world’s greatest companies. Is this proof that VC investing is much as an art as a science?
I think VC is as much about gut feel as it is about rigorous investment criteria. In fact, many very successful VCs will tell you that they've turned down investments in some of the world’s greatest companies. Is this proof that VC investing is much as an art as a science?
My top 5 VC investment criteria for cheque sizes from £500k to £5m:
1. Team – Do they have the gravitas to grow the company from £1m to £100m revenue?
2. Revenue/Traction – Are they able to effectively monetize or will they constantly need follow-on capital?
3. Scalability – Could this investment realise 50x-100x?
4. Competition – How do they stack up? Will the company be wiped out or are they able to grow acquisitively?
5. Exit Opportunities – How will I get my investors’ money out?
What is your VC investment go, no-go advice?
If your VC investment worked well, you might be interested in the next post on private equity investing.
Alex @ The Tippy Top Blog
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Key:
1 of 5 - Intro
2 of 5 – Angel Investing (£50k – £500k)
3 of 5 – Venture Capital (£500k - £5m)
4 of 5 – Growth Private Equity (£5m - £40m)
5 of 5 – Distressed Private Equity (£5m - £40m)
1. Team – Do they have the gravitas to grow the company from £1m to £100m revenue?
2. Revenue/Traction – Are they able to effectively monetize or will they constantly need follow-on capital?
3. Scalability – Could this investment realise 50x-100x?
4. Competition – How do they stack up? Will the company be wiped out or are they able to grow acquisitively?
5. Exit Opportunities – How will I get my investors’ money out?
What is your VC investment go, no-go advice?
If your VC investment worked well, you might be interested in the next post on private equity investing.
Alex @ The Tippy Top Blog
Please Like, Share, Follow and Subscribe to The Tippy Top!
Twitter | Facebook | Instagram | LinkedIn | Snap | BlogLovin' | Medium | Pinterest
Key:
1 of 5 - Intro
2 of 5 – Angel Investing (£50k – £500k)
3 of 5 – Venture Capital (£500k - £5m)
4 of 5 – Growth Private Equity (£5m - £40m)
5 of 5 – Distressed Private Equity (£5m - £40m)
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