Ask A VC #3

Question:

How do you evaluate a company pitching to you?

Are there any critriea or specific metric you look for?

Answer:

These are always loaded questions since there is no one answer to them. It also depends on the company and the market and the team. Context is everything to be honest.

That being said at seed stage I, but I am sure my SeedPlus partners will have their own opinions – look for market, team and strategy. Market is super important since we only want to fund things that can go big and that means having a product that goes for a large adddressable market size. Team is huge. We look for a team that likes to be with each other, is open to being challenged, and appears to enjoy a healthy discourse peppered with honest feedback. Strategy is a big deal as well. I like to see that the team has clear thoughts around what they are trying to do, how they plan on winning and what they might do when things go wrong.

There is never one specific thing or metric but obviously if the product is launched then it is good to see stats that make sense and that clearly articulate what the team wants to show. It is also good to properly portray things – for example, don’t show me CAC is just your google adwords bill but calculate for me a fully loaded CAC. This is a big subject and one we hope to put more material out on at SeedPlus.

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