Inside The Investor's Mind
Inside The Investors's Mind Jeff Clavier Walks Through Early Investment Analysis by Anna Vital How do I feel about working with this team 5-7 years? 1 developer 1 designer 1 business expert the ideal combo alpha product. releasedM too many people 5 founders lonely journey, but you can do it solo founder (ex. mint.com) Lis there organic retention? seen it work - married (ex. Eventbrite) what's the user who will build? acquisition model? all business experts team product Enterprise within revenue opportunities $10-$50M ISgos) 3 years revenue feedback from early users - retention is key- comparables unit economics- - 10M-100M Consumer product LTV RVP rDAU -rough acquisition costs SEM Facebook PPI users traction last as long as you can (family&friends) 0 S1OOK market opportunity Bogtstrap I like everything so far, but what will it take to raise Series A 18 months from now Seed llasts 12-18 months $IM $1.5M lasts 2 years Series A $3M - $5M Are VCs build (ex. e-commerce interested in this type of product? is it expensive to marketplace) Series B $8M - $15M valuation ok, I'l invest funding who who's joining us? incubators 5%-10% 1-3 UVCS 5-15 seed round 1 traditional VC- (if you must) option pool 10%20% round 20%-25% in cap table helpful angels (with expertise, time, Rolodex, syndication) Series A 20%-25% other investors founder dilution always use lawyers don't talk to competitors incorporation & convertible note $5000 pre-marketing - 5 funds equity round $20,000 $30,000 while fundraising -10 out of life of $30,000 -other rounds $50,000 20-25 funds funds contacted cost of funding -yes- no crisp vision of product- will the Lcompany great!- raise - no vision how to acquire users series A? no- let's find a soft landing founder says "In 5 years Google will buy us" acquisition aquihire what never works is it working? I can sum it all up for you in my "3-Asses Rule" Does it work? smart team kick Jeff Clavier Managing Partner, SoffTechVC product market big Traditional VC expectation: "I will lose 30% of my investments" 140 companies funded SoftTechVC's Result (lost about 20%) (since 2004) 7ex. Mint.com 17x return still going on 25 30 got dead acquired SoftTech VC softtechvc.com FOT FundersandFounders.com
Inside The Investor's Mind
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