The number one thing VCs look for in investing in early stage preseed companies is team and vision. This means that the team has to show why they have an unfair advantage to win in a particular space over their competitors; this is usually evinced by strong founder-problem-fit.
What this means is that the leaders of the startup have come from the industry and have identified 1 or 2 critical path processes or technologies that are broken that they themselves are uniquely positioned to fix. If a founder can convince a VC that they have that background and they know the specific problems of a space that they are uniquely suited to solve then they have already won that VC's attention.
This dovetails into the second precept of earning preseed VC dollars and that is getting them to buy into the vision. What startups have to be aware of however is that they mustn't try to come off like they're trying to boil the sea and do too much. This means that they need to identify one or two pain points inherent in an industry and come up with a cogent narrative about how they're going to solve that before expanding into other use cases within that industry or other industries at large. This is the typical land and expand strategy and what many early stage startups can leverage to get VC funding.
#StartupSuccess #VentureCapital #FounderFit #VisionaryLeadership #Entrepreneurship #Investment #StartupJourney #BusinessVision #FounderInsights #PreseedFunding #StartupStrategy #Innovation #Founders #BusinessLeaders #VCFunding #StartupTips #LandAndExpand #BusinessGrowth #IndustryKnowledge #TeamBuilding #StrategicVision
What this means is that the leaders of the startup have come from the industry and have identified 1 or 2 critical path processes or technologies that are broken that they themselves are uniquely positioned to fix. If a founder can convince a VC that they have that background and they know the specific problems of a space that they are uniquely suited to solve then they have already won that VC's attention.
This dovetails into the second precept of earning preseed VC dollars and that is getting them to buy into the vision. What startups have to be aware of however is that they mustn't try to come off like they're trying to boil the sea and do too much. This means that they need to identify one or two pain points inherent in an industry and come up with a cogent narrative about how they're going to solve that before expanding into other use cases within that industry or other industries at large. This is the typical land and expand strategy and what many early stage startups can leverage to get VC funding.
#StartupSuccess #VentureCapital #FounderFit #VisionaryLeadership #Entrepreneurship #Investment #StartupJourney #BusinessVision #FounderInsights #PreseedFunding #StartupStrategy #Innovation #Founders #BusinessLeaders #VCFunding #StartupTips #LandAndExpand #BusinessGrowth #IndustryKnowledge #TeamBuilding #StrategicVision
.webp)
