Frontline Ventures carried out a survey of 206 international startup founders, revealing which elements are a very powerful to pre-seed and seed founders when selecting between VCs.
Over half of respondents (53%) picked the fund’s understanding of their sector and enterprise as one of many prime 3 decisions in selecting between VCs.
With my Remagine Ventures hat, a specialist fund in gaming, Metaverse/Web3 and client tech, I used to be completely satisfied to see that deep sector understanding and a related community matter most on the earliest stage!
What’s attention-grabbing is that the significance of sector experience remained constant (prime issue) whatever the quantity raised and former expertise in fundraising of the founders. It adjustments nonetheless, in North American startups, which prioritise potential buyer intros, the second most vital issue general.
Poalim Hello-tech just lately requested me to share a tip on fundraising with early stage founders and I emphasised the significance of Founder-Investor Match, particularly within the early levels:
“In a more durable fundraising surroundings, founders ought to take into consideration founder-investor-fit, as that early investor is more likely to be there for the lengthy highway.
On the early stage, working with sector specialists funds generally is a huge plus: they’re industry-specialized, carry a related community and are already predisposed to consider in your house as they’re betting their fund on it.
Aside from chemistry, with a purpose to assess whether or not there may be founder-investor match, at all times get references on the investor from different startups which have handled them. Even in a tricky market, offers get finished and doing all of your homework upfront is more likely to make the complete course of extra environment friendly.”
Eze Vidra, Managing Companion at Remagine Ventures
Finally, there are a whole lot of causes founders select a associate/agency, and it’s not at all times attainable to seize the true motivations in a survey, however I believe it is sensible that sector experience, a focused community and a perception in the way forward for the market/sector play an enormous function in selecting a supporter and sparring associate in seed/pre-seed.