How Early-Stage VCs Decide Where to Invest

Subject: How Early-Stage VCs Decide Where to Invest Thu Jun 06, 2019 7:29 pm

In an investing world glamorized by Shark Tank, Silicon Valley, and “unicorns,” simple, straightforward communication about what drives VC decisions is rare.

At the early stage of venture investing, raw data is very hard to come by. Obviously! At that point, the company usually hasn’t gone to market yet in any real way. So at the time when many VCs are evaluating a startup for possible investment, qualitative evaluations dwarf quantitative ones.

The old adage “Garbage in, garbage out” is particularly apt for early-stage venture investing. You simply don’t have enough financial metrics to meaningfully model future potential returns for a business that doesn’t exist beyond the PowerPoint slides the entrepreneur has put together (sometimes just hours in advance of the pitch meeting with a venture firm).

How Early-Stage VCs Decide Where to Invest Biz-Excerpt-Sand-Hill-Road

How Early-Stage VCs Decide Where to Invest Biz-Excerpt-Sand-Hill-Road

https://www.wired.com/story/how-early-stage-vcs-decide-where-invest/

How Early-Stage VCs Decide Where to Invest

How Early-Stage VCs Decide Where to Invest

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