WHAT AREINVESTORS LOOKING FOR?ADAM BENAYOUN - SEPTEMBER 27 2016
WHAT AREINVESTORS LOOKING FOR?
IT DEPENDS
TEAM
TEAM
▸ Obsessed, Grit, Resilient▸ Cross functional team▸ Engineering, Product/Design and Marketing/Sales▸ Domain knowledge can be a hindrance (Shocking!)
▸ Airbnb, Uber, Amazon▸ Not the time to be humble
PRODUCT
PRODUCT
▸ Functional prototype or product▸ OSS, API, CLOUD = building product is cheap▸ Solves a problem for a specific target customer▸ Demo the product in person
MARKET SIZE
MARKET SIZE
▸ Size actually matter▸ Top to bottom = avoid at all costs▸ Bottom to top (based on usage)
▸ # of customers * avg txn * n = Big #▸ Market growing (xx% per year)
▸ Adjacent markets
TRACTION
TRACTION
▸ Measurable traction speaks louder than words▸ Subjective and dependent on industry/business ▸ Profitable (or near) unit economics▸ Strong engaged users▸ Growth / Momentum
STORY
STORY
▸ People hate pitches but love stories▸ A good story is memorable▸ Pitching can feel impersonal and unentertaining ▸ Pitch = cram everything into a tight amount of time▸ Coherent, Authentic, Organic▸ Create tension with the problem
INVEST IN LINE,NOT DOTS.- MARK SUSTER, UPFRONT VENTURES
ANNOUNCEMENT
DISTRO BOOTCAMP
▸ 2 weeks hands-on education program▸ 7-10 companies per batch ▸ Will receive some funding▸ NOT an accelerator▸ Framework to:
▸ Test assumptions▸ Iterate rapidly▸ Reach Product Market Fit
DISTRO BOOTCAMP
▸ Requirements ▸ Seed Stage companies▸ Raised at least $100k▸ Have a product▸ Traction is optional
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