Submit your pitch to Seedstars International Ventures.McKinsey Global Private Markets Review 2023: Private markets turn down the volume (74 pages) The music didn’t stop, but someone turned it way down Capital is a commodity, the VC platform the differentiator, but working with the right people may have the most profound impact. Given that a startupVC relationship is destined to last many years, the human touch should not be underestimated. VCs who were respectful and trustworthy stood out most. We scoured reviews founders had written on VCs online and the most common comments were regarding soft skills. This is probably a more telling sign as to who will have your back through thick and thin. Try and talk to failed companies in the portfolio too and discover how founders were supported through their final hours. To better evaluate the human touch, don’t just reference check the success stories. Of course we are the ones putting the risk capital on the table and have a fiduciary responsibility, but we really enjoy and respect when a founder does their homework by asking questions, doing some founder referral calls, and maybe even talking to core members of the platform team. In return, we probably field an average of 5 questions per founder. Founders, do your homeworkĪs a VC, we ask several hundred questions when we do due diligence on a startup. ![]() A good startupinvestor fit would be like scoring a few lines in Tetris. Each investor will have their own T profile and each startup will have needs that evolve over time. Whatever the T, it should be clearly explained to you as the founder so you can judge the fit. For example, all VCs will be able to support with fundraising, but when you dissect this value further, you can cite various components: pitch deck review, fundraising strategy, investor intros (by region and country), cap table reviews, and exit advisory. The value adding components listed in the above image are all fairly high level and each one can be broken down further. For example, YCombinator would probably put fundraising as their super power, Coinbase Ventures might cite their technical knowhow, and at Seedstars International, the focus is on growth. VC firms running a platform need to figure out what skills to focus on and develop a T-shaped profile. See the image below on a breakdown of services we typically see in a VC platform from the most common to the rarest. What a startup needs the most will change over time.Ī VC platform can add value in multiple ways: network access, fundraising support, talent recruitment, sales, technical knowhow, and the list goes on with both common and rarer startup needs. ![]()
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