Why we like revenue generating & VC backed companies?

Revenue generating companies have shown that they’ve successfully been able to identify a need as well as build an initial product to solve that need. They may be less risky and plan to use investment capital for growth. Furthermore, companies that have been backed by at least one venture capital firm or graduated from an accelerator means someone else has contributed to vetting and investing in the company.

Still risky?

Early stage companies, when properly invested, can be one of the highest returning asset classes available today. However, being lucky enough to achieve the high returns available to investors is stunningly hard. By investing in the portfolio of high-growth companies backed by venture capitalist and top accelerators. Keep in mind these companies still have at least a 70 percent chance of failure.

STARTUP SOURCING

Every startup in the portfolio is already backed by other reputable VC’s or accelerators. Granted as mentioned above failure rate is still at least 70 percent. Historically, the opportunity to invest in fast-growing companies is reserved for VC Funds. The average angel investor usually gets second pick at best for the fast-growing companies. This results in a 99 percent failure rate.

What do most Vcs and professional Angels look for?

Teams that have known each other or worked together in the past. CEOs that are very smart, confident, move faster than anyone else, and can explain what their business with ease and clarity. Evidence of the CEO’s ability to recruit top executive talent. This is especially important in the early stages when a company can’t afford to pay high salaries but still needs to build out a core executive team that will further help to build out the teams below them. An often-overlooked reality is that A players don’t like to work for B players, so if those early team members aren’t top performers, the future org is unlikely to get any better.