Fundraising · Business Development

What are some of the investor expectations in terms of traction?

Maria Garnier Operations Coordinator en Socialatom Group

November 2nd, 2016

I have not found a resource yet where I can see the type of expectations that investors have from tech startups depending on their financing cycle and stage. Is there a specific milestone they want to see that is different on Seed, Series A, Series B, etc rounds of financing? Can any of you provide some perspective on what are the kind of things that investors want and expect on the different rounds of funding? I assume they are all different and vary from cycle to cycle. Thanks so much!

Ken Ravon CEO & President @ Solutions Recovery International

November 3rd, 2016

Basically they want to invest in a secure venture on its way up. That means your product must had passed the test of market, you must have revenue, backlog, and everything in place for success. The question that entrepreneurs are asking is if I have all of this in place why do I need an investor? The answer is that if you want to speed up you progress, you bring an investor, otherwise if you can wait to reach the point you have in your BP, there is no reason to share you venture with anybody. 

Martin Omansky Independent Venture Capital & Private Equity Professional

November 2nd, 2016

In general, we like to see some independent validation that the technology and/or market is real. Paying customers, especially repeat customers, are a good sign. Pre-revenue companies have a much harder time convincing us that the venture has legs. On the other hand, some ventures get substantial financing well before any revenues are brought in - pharmaceutical and medical device companies come to mind in this category, so the answer to your question is: it depends. If I were doing the entrepreneurship thing again, I would try to advance my venture as much as possible before looking for outside financing. Sent from my iPhone

Hasan Tarek Quality Assurance Automation Consultant at Church Pension Group

November 2nd, 2016

follow this link:[http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/venture-capital-investing-stages.asp]

Read this Newsletter every day it will help you to find venture capital information, latest investment and so much more. Very informative site.
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Hope to talk to you soon. Best of luck.
Thank you. 

Rod Abbamonte Co Founder at STARTREK / @startupHunter / @startupWay / @CoFounderFound / @GOcapital / @startupClub / @lastminute

November 3rd, 2016

Previously validation of audience, traction and monetisation model.

John MBA Business Growth Advisor | Consultant | Strategist | Coach | Business Modeller

November 3rd, 2016

combination of factors ranging through; the team, platform scalability, rate of customer acquisition, monetisation model, market opportunity BB, BC, size and competitive landscape.