Critical Factors for Obtaining Venture Funding by Garage Technology Ventures

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1. Compelling idea

Reflect a deep understanding of a big problem or opportunity, and offer an elegant solution

2. Team

You don’t need to have a complete, world-class, all-gaps-filled team

The founders have to have the credibility to launch the company and attract the world-class talent that is needed to fill the gaps

Winning over investors (and customers and co-workers) depends on your people skills, not just your technical prowess.

3. Market Opportunity

If you are focused on technology, you should be targeting a sector that is not already crowded, where there is a significant problem that needs to be solved, or an opportunity that has not been exploited, and where your solution will create substantial value

It’s about how much value you can create

Brilliant new companies create big markets, not the other way around.

4. Technology

What makes your technology so great? The correct answer is, there are plenty of customers with plenty of money that desperately need it or want it

How are you going to sustain the technology advantage over the next several years?

You better have the talent or the partners to assure investors that you are going to stay ahead of the curve.

5. Competitive Advantage

You have to show that you have a good way to reach your target customers and beat out your competitors

It’s not good enough to build a better mousetrap; you have to really want to kill mice.

6. Financial Projections

What drives your growth, what drives your profit, and how your company will evolve over the next several years.

7. Validation

Is there good evidence that your solution will be purchased by your target customers?

Do you have an advisory board of credible industry experts?

Do you have beta customers to whom investors can speak?

Do you already have paying customers?

What other brand name validators can you offer?

To secure venture funding today, you need an excellent grade in all seven areas, and an A+ in at least a couple

Don’t waste your time with a story that is not compelling and credible

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