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ok - since you volunteered... - How much of the VC funding decision (the one you quoted) is based on economic characteristics like growth potential or need for
by mathattack 13y ago
ok - since you volunteered...
- How much of the VC funding decision (the one you quoted) is based on economic characteristics like growth potential or need for money? My impression is old enterprise requires more money to scale, and hence could have a bigger need for VCs. I could see the New model being more angel-friendly.
- Do you have any other observations on the revenue models as the driver? Old Enterprise needs bigger contracts.
- brandonb 13y agoI think the VC's funding decision is definitely based on growth potential, and less on need for money, but both New Enterprise and Old Enterprise startups tend to require a lot of money to scale and there are VCs that invest in either. What I found is that individual VCs are very polarized -- some only invest in Old Enterprise, some only invest in New Enterprise, and a few invest in both models. It's quite confusing since the feedback you get is very bimodal, and generally, while you can convince a VC that your startup is a good fit for one model or the other, you can't convince them to do the New Enterprise model if they invest in Old Enterprise, or vice versa. But once you understand the distinction, then it's pretty easy to figure out who to pitch -- look at their portfolio companies.
- mathattack 13y agoThanks! What I meant is that certain entrepreneurs will choose to go for money, while others won't. Again - thanks for the reply!