You're considering investing in entrepreneurs. What key factors do Venture Capital firms seek?

An incomplete list of ways Investors evaluate teams: 1. Founder market fit: the founders' relation with the problem being solved. 2. Speed of execution: how fast founders can turn ideas/plans into tangible results + how fast they can iterate from past learnings. 3. Core competencies: demonstrate relevant competencies for what is being built (varies vastly depending on the complexity of the product, and the type of distribution the model demands). 4. Clarity in communication: can you put together an exciting narrative for your business, can you explain what you do clearly, can you adapt/empathise with your audience. Generally, ask yourself the following: why are we the #1 team globally for what we are currently building.

Experience: A proven track record in the industry or relevant domain is crucial. Passion: A deep-rooted enthusiasm for the business and its potential. Complementary Skills: A well-rounded team with diverse skill sets is essential. Leadership: Strong leadership qualities, vision, and the ability to execute. Also you read The StartUp Playbook: strategies for launching and scaling your business by Jaswant singh for more details

I think this is a bit of a generic question that cannot have one valuable answer. If the goal of this question to see if it is investing in entrepreneurs vs investing in companies which this question seems to be asking then one really should look into this person's track record, ability to lead, be organised, fire and hire people, being an expert in the niche they are trying to build or leading the right experts, money managment etc, values and trying to spend as much time possible around them- but again it is a quite generic question that does not have one right answer.

"Investors invest in founders, not ideas" In many cases, the market conditions change, competition landscape evolves, and new tech (like AI) or trends will emerge. So, One of the most important quality in a founder that investors look for is their ability to adapt, and pivot effectively. A founder who can take calculated risks under pressure, and reallocate resources in less time, is key to a successful high-growth startup.

The USP is a great indicator. Ask the founders what makes them unique and have a quick response including product/service description, competitors analysis/differentiation and market positioning in a sentence (or two). That's a big answer that only those prepared to thrive will be able to answer

I find it helpful to think about a unique value proposition for both the founders and - what makes them so special. Are they the right people to build this business? Usually a combination of background, character and personality. Then, consider the value proposition of the business. Have they framed the problem right? Is the resulting proposition good enough for even ‘problem unaware’ consumers to think it will solve their pain points when they hear about the value proposition.

An innovative business model is a key differentiator between an average startup and an excellent one. Do they have a phased plan working towards multiple revenue sources?, do they truly understand what their consumers are willing to pay for? Is it clear how they will acquire customers and are these costs low? These are the questions that are important to address.

One of the key questions to be made to a start-up or founder would be, who's paying for your service? No better validation than that. Avoid answering I have signed off several pilots (that won't work). The revenue model (and financial projections) need to match the company's business model and strategy. It has to be solid enough to show growth but also to make sure that the business could be supported with a certain level of revenue, gross margin, price grid, expenses, etc ...

Tough question. Comps will work but when is a break ground tech is almost impossible. However, I like to ask a question: given the valuation at exit, who do think will buy your company at that price?

The purpose of the Risk Assessment is not only to identify potential issues but also to determine if the company has accurately anticipated them and whether there is a contingency plan in place. Understanding the market, environment, and potential issues demonstrates a thorough understanding of the business, indicating that the team leading the company is well-suited for the job.

We need to see both grit and superpower as key requirements to invest in entrepreneurs, the superpower being something the entrepreneur knows that no one (or few) know or can do that few can do. If you only have grit, you will be less likely to bring a unique and compelling solution to the world and return exceptional returns to VC investors. If you have a superpower but don’t have grit, you are less likely to persevere when things do not go your way, and this will unfortunately happen a few times in the entrepreneur’s journey.

In my experience the successful startups are the ones that have founders that never give up, are constantly testing and learning, and love their work. In other words, you should ask yourself as an investor will this founding team be successful no matter what? Do they have what it takes to pivot if necessary and take difficult decisions? Can this team take this startup to the next level? Character and hard work are more important ingredients for successful startups than being super smart or having daddy write you a check (there are exceptions of course).

Here are my startup evaluation criteria: 1) Team - Past Founder - Domain Expertise - Story 2) Market Size - Is it large enough? - Market share - Growth of Market 3) Product-Market Fit - Vitamin or painkiller - Traction - Urgency 4) Scalability - Ease of Scaling - Timeline 5) Competition - Switching costs - Competitive landscape - Competitive advantage 6) Investment Fit - Industry - Geography - Investment Stage - Investment Size - Investment Philosophy - Value-Add - Lead or Co-Investor

Besides vision, great product, great team and new market opportunity there are two essential questions to answer: -Do they have a clear and proven business model? -Do they have a repeatable and scalable GTM/Sales in place Teams can be hired, industry expertise can be gained, product can be interested. But if there is no clear business model and acquisition strategy it’s hard to see the company as viable business.

The 3 tiers that support a company: - A stable team - Clarity on defining the problem they want to solve - A clear vision pointing to a plausible plan of how they will solve it