What do VCs Invest In?

1 min read  What do VCs Invest In?

What do VCs Invest In?

I’m often asked what venture capital looks for.

When looking to invest, VCs look for emerging tech markets with strong growth projections.

These sectors include blockchain, AI, Data Analytics, and other strong growth areas.

They do this partly because there’s usually a strong deal flow and it’s easy to explain to limited partners.

VCs also look for platform-based businesses, rather than solo products.

They look for the following: Recurring revenue, Virality factors, Network effect components, Very large markets, Strong teams, and a scalable business model.

Also, traction in your business and exits of other companies in the sector drive interest as well.

Are You Venture Fundable?

If you want to raise venture capital funding, then check these points to see if you are venture fundable:

Do you have the following:

Recurring revenue – Do you have recurring revenue in your model?

Platform-based approach – Are you taking a platform-based approach to the product/service delivery, or do you sell one-off products?

Data-centric – Are you capturing key data elements that improve your process and product?

Strong Team – Do you have a strong team?

Does each member bring expertise about their field to your business?

Fast Growth (>50% YoY) – Are you growing at least 50% YoY?

Large Target Market – Are you targeting a market over $1B?

Read more from TEN Capital: https://tencapital.group/education/

Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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