What Investors are Looking For, by 500 Startups

WHAT AREINVESTORS LOOKING FOR?ADAM BENAYOUN - SEPTEMBER 27 2016

WHAT AREINVESTORS LOOKING FOR?

IT DEPENDS

TEAM

TEAM

▸ Obsessed, Grit, Resilient▸ Cross functional team▸ Engineering, Product/Design and Marketing/Sales▸ Domain knowledge can be a hindrance (Shocking!)

▸ Airbnb, Uber, Amazon▸ Not the time to be humble

PRODUCT

PRODUCT

▸ Functional prototype or product▸ OSS, API, CLOUD = building product is cheap▸ Solves a problem for a specific target customer▸ Demo the product in person

MARKET SIZE

MARKET SIZE

▸ Size actually matter▸ Top to bottom = avoid at all costs▸ Bottom to top (based on usage)

▸ # of customers * avg txn * n = Big #▸ Market growing (xx% per year)

▸ Adjacent markets

TRACTION

TRACTION

▸ Measurable traction speaks louder than words▸ Subjective and dependent on industry/business ▸ Profitable (or near) unit economics▸ Strong engaged users▸ Growth / Momentum

STORY

STORY

▸ People hate pitches but love stories▸ A good story is memorable▸ Pitching can feel impersonal and unentertaining ▸ Pitch = cram everything into a tight amount of time▸ Coherent, Authentic, Organic▸ Create tension with the problem

INVEST IN LINE,NOT DOTS.- MARK SUSTER, UPFRONT VENTURES

ANNOUNCEMENT

DISTRO BOOTCAMP

▸ 2 weeks hands-on education program▸ 7-10 companies per batch ▸ Will receive some funding▸ NOT an accelerator▸ Framework to:

▸ Test assumptions▸ Iterate rapidly▸ Reach Product Market Fit

DISTRO BOOTCAMP

▸ Requirements ▸ Seed Stage companies▸ Raised at least $100k▸ Have a product▸ Traction is optional

Partners

THANK [email protected]