It's something that many VCs do that all VCs should avoid.
Venture capitalists are, by nature, confident people. Some VCs might even be perceived as being cocky. And maybe some of them are just that. But with that confidence (or cockiness) comes a degree of oversight that might prevent the investor from picking up on some of the more minuscule details of a business.
When I interviewed Christian Nagel, a managing partner at Earlybird Venture Capital, he had an impressive list of things to look for in a startup. They included (but were not limited to) the following:
Market News and Data brought to you by Benzinga APIs- “Should be very product centric/unique and the team should reflect this.”
- “Model should be sticky/provide for lock-in through network effects and/or a highly engaged user base.”
- “Market size should be in the billions.”
- “Capital efficiency: can it be scaled efficiently.”
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Posted In: EntrepreneurshipSuccess StoriesStartupsTechGeneralChristian NagelEarlybird Venture CapitalTrip Chowdhry
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