6 Things Early Stage Investors Want To See
10
Things Early Stage Investors Want to See Tom Walker TOP 6
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Transcript of 6 Things Early Stage Investors Want To See
ThingsEarly Stage Investors
Want to See
Tom Walker
TO
P 6
Competition is
TOUGH.
As an investor with multi-million dollar funds under
management—usually in syndication with others—
what we and other
investors want to see.WEKNOW
CUSTOMER Validation
Customer validation is data-driven and evidence-based.
Investors listen to entrepreneurs who know what their customer’s problems are—entrepreneurs who have talked directly with and listened to all levels of potential customers, from general managers who own P&Ls, to technical implementers, to the actual end-user—whether that is the nurse who will be relying on a new medical device or the warehouse foreman who needs a faster way to fill orders, to a security guard who needs to see in the dark.
Market
Validation
Investor
Validation
MARKET Validation
What distribution channels (physical and sales) exist to serve this population? What sorts of strategic partnerships will be required to tap in? What are competitors doing or not doing that you can do better? Beta customers, sales and other direct contact with the market are the best forms of validation.
Customer
Validation
Investor
Validation
You’ve built a great product or
service. However, what evidence is there
of a large, well-defined population of
buyers for that product or service?
INVESTOR Validation
Customer
Validation
Market
Validation Has prior due diligence been completed? What were the findings? Are there other investors who have expressed an interest in syndication?
Who else (besides friends and family)
has put money into the deal?
Entrepreneur’s Skin in the Game
Is the entrepreneur full-time?
Sweat equity is good. Cash is better.
How has the entrepreneur
invested in the business?
Pro
tectio
n
Is the technology patented? Does the startup own the rights to the technology or does it hold licensing agreements that preserve exclusivity? How great are the reverse engineering risks?
IP
Coachable Entrepreneurs
Most of all we want to see business founders who
are passionate and have had some experience in
a startup environment before—even if they failed.
We are looking for individuals who know their industry,
customers, and technology, yet have the confidence
and balance to acknowledge that they don’t know it all
and ask for advice. We want founding teams who can
listen and lead.
TechColumbus is a great place for
STARTUPS to become INVESTABLE.
As both advisors and investors, we
help create the kinds of companies we
(and our co-investors) want to add to
our investment portfolios.
