How VC Investors Evaluate Startups (Before Investing £1-5m)
@fogeldavid
6 Years 12 Years
Head Of Acceleration @Wayrauk
1. Things 2 Consider Before Approaching VCs
2. How do VCs Think & Why Risk Market Team Traction (AARRR)
2. Why are VCs doing This?
Don‘t need
Lots of money to
Create Great
Games
3. Are You What VCs are Looking For?
This is where VCs Play
Source: Startup Genome Report 2012
10% $1bn
Awesome Execution (After 5 years)
Huge Market
$100m Potential Annual Revenue
$100m
Annual Revenue
$500m Potential Company Valuation
5x
Revenue Multiple
20% $500m
VC’s Share of your Company (After 5 years)
Potential Company Valuation
$100m Potential VC Return
10% $1bn
Awesome Execution (After 5 years)
Huge Market
$100m Potential Annual Revenue
“It’s all About the Team”
Acquisition 1000 100%
Referral 70 10%(out of Active)
Activation 700 70%
Revenue 14 10%
Retention (Day 1) 140 20%