| Excerpt: The Problem & Market Segment - Moderate to Strong Predictor "This would have been a stronger predictor had it not been for a few outliers at the top. Aside from a few companies who got a high number of intros despite scoring relatively low here, this was overall a very good predictor of who get intros. Picking the right problem to work on seemed more important than having the right solution by more than 2x. So what was the most important factor? Which area, if a VC only knew one thing about your company, was the most predictive of enticing a VC to want to meet? Some founders might be disappointed, because its that age old question that they love to hate… “How does it make money??” Yes, the underlying economics of the business was the strongest predictor of whether a VC wanted an intro over any other aspect of the company. Founders who could clearly articulate an economic opportunity fared really well with investor interest." Hmm, reminds me of some song lyrics... "Come on, come on, listen to the money talk..." -AC/DC "Money Talks" Observation: Just as Scientists talk science, and Lawyers talk law, Venture Capitalists speak "Venture Capitalese", aka "Money", aka, "How much money could I the VC make with this? That, and give me compelling proof of what you're saying in under a minute..." Ideas, on the other hand, even great ones (to a VC point of view!) are the proverbial "dime a dozen" (or less even! An idea and fifty cents will get you a cup of coffee... Or, an idea and five dollars will get you a cup of coffee if you go to Starbucks...<g>) |