I was watching a great talk from Ben Horowitz given at UC Berkely and in part of his address he covered the subject of what he as a VC looks for when he is considering investing in a tech startup. Really interesting and worth mulling over if you’re considering a startup or plan to raise finance at some point for your business.
What Do We Look For?
- The size of the opportunity
- The quality of the team
- A bad market always beats a good team.
Other Things That We Like …
- Megalomanics. People who really believe they can change the world and have the hubris to try.
- Outliers. Things that are different and unexpected.
- Shifts in technologies or markets (eg SSD in the storage market)
- Market sectors that are dead (eg when Yahoo dominated search and Google came along)
- Entrepreneurs who are hyper competitive and will tilt at a big market vs going for a protected but smaller niche.
- Hard core technical team. The company needs to be in dire straights if they leave.
- Products then teams rather than vice-versa
If you’re interested in viewing the entire video, here ya go.