Venture capital investment is one of the top places startups look out for when seeking funding for their business alongside other popular options like angel investing and crowdfunding. Moreso, there is a lot of competition with investors doing all they can to determine the viability of a business before putting their money into it.
When anyone asks what investors look for in startups, typical answers include an experienced management team, a large market for their product or service, growth potentials, uniqueness. Lately, the word ‘disruption’ has become a cliche with the rise of companies such as Uber and Netflix, among others; Investors continue to look for startups unique enough to upset an industry significantly. In the same vein, various technological innovations such as artificial intelligence have made VC funding easier and less biased.
However, things have not been all rosy in the VC market. Every expert agrees that VC investing faced a huge setback last year with the IPO flops of major companies such as WeWork, Uber, Slack, and Lyft as the facts show. Therefore, startups can expect investors to make significant adjustments based on lessons learned last year,