Things to look for in a potential VC investment?
Jokes aside, what main things would you look at for a VC deal (seed and Series A)? I would assume product market fit, retention metrics and TAM would be important but I’m curious on what others think.
Founder / Founding team quality. At pre-seed/seed, you are betting on them, not the company. At A... basically just top line revenue and how much potential you think they have... Retention metrics sure. But really... the winners in VC have explosive growth, getting bogged down in nitty gritty metrics this early is somewhat of a time waste. A winner is a winner, you have to have the eye for it / its team. Can promise you that the boys over at a16z / sequoia aren't spending their time scrutinizing LTV-CAC ratios.
Founder. Founder. Founder.
The right founder/CEO can will Blockbuster into a rocket ship. The wrong founder/CEO could have been handed FaceBook/Uber/AirBnb after its Series A and would have made nothing of any of them.
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