Sunday, December 2, 2012

What Venture Capital Firms Look For in Start-Ups

I saw this article in December issue of Inc. magazine and thought it was important to spread the word out to all those entrepreneurs who are looking for funding or in the early stages of development. In a recent survey, VCs revealed that social connections influenced their investment decisions on new start-ups but that other factors were more important. Here is what most venture capital (VCs) firms are looking for in start-ups: 

  1. 30.4% in potential return on their investment
  2. 27% in Founders experience in business or other start-ups
  3. 26.4% in market readiness
  4. 6.6% in regulatory exposure
  5. 6.4% social connection with Founders (well social media) 
  6. 3.2% in a lead investor. 

If you are a start-up how do does your company fit into these VC factors?