Stop playing a numbers game.

Or, at least get the right numbers on your side!

VC-Investor-Guidance-2

If you’re not a VC, an investor and read this page by curiosity, you may learn something.

Basically, VCs & investors invest money (their own money or the money of their clients) in start-ups that are at different levels of their development. And different levels of development mean different levels of investments.

Again, basically, more the start-up is developed more they need money to continue their development. Quite simple, isn’t it?

VCs & investors are looking, chasing the “unicorn”. And, as you know, unicorns don’t exist on earth.
But it doesn’t mean for them that they won’t find one and develop it.
A unicorn is a start-up that will worth at least a billion dollar in a few years.

So, how can I help? Because I’m not properly speaking an investment advisor.

Well, you must know that in the world of start-up, the failure rate is HUGE! And I really mean it!

 

So, the chance to get any ROI is not that high. To say the truth, even pretty low. But VCs & investors are often playing a numbers game. More you invest in different start-up, more you have chances to find a few ones that, without becoming unicorns, will grow and become profitable.

You would probably wonder if VCs and investors have any process to select projects to invest in. Of course, professional ones do!

But all in all, in the end, it’s a matter of people: the entrepreneur, the leadership team of the startup.
And advised VCs and investors should care, know of “what wood are made of” these people they have in front of them.
Because, even if the start-up idea is good and has everything to become profitable, the ones who are supposed to run the project are the “start-upper”- ie the entrepreneur, the leadership team.

If you can’t accurately measure some precise mind traits, it’s like signing a blank check. Period! Besides all the economic factors, the ones who will derail the projects are the entrepreneur and the leadership team of the startup.

 

So, I’m asking you, what would it worth to you to know in advance
the mental strengths and flaws of the people you have in front of you,
how they will very probably behave,
what’s really motivating them
and who are asking for your money for their project
?

INVEST in a "A TEAM" (the right people), NOT JUST in a "A PRODUCT"!

What VCs and Investors are dealing with ... every day

People problems

If you listen to  VCs and investors, a lot of them say they spend a great deal of their time & energy to deal with people problems. They quite often use the words "human resources" problems. 

It's not that much a human resource problem than a human capital problem... a least at the beginning.
I remember an investor saying 

I rather prefer to invest in "C" product with a "A" team,
than investing in a "A" product with a "C" team.

Now, the whole question is HOW DO YOU IDENTIFY AN "A" TEAM?

 

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