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I got the impression that most of VC simply look for multifold returns and they shun companies which can be successful in a limited way with moderate returns.
by __Joker 12y ago
I got the impression that most of VC simply look for multifold returns and they shun companies which can be successful in a limited way with moderate returns.
- mgkimsal 12y agoYears ago I pitched a VC with a working prototype and biz plan - actually was looking more for angel-level money (perhaps) - somewhere between $300-$500k, and I was projecting revenue (which would be mostly profits) of $5m/year within 4 years (aggressive growth by my estimation, but doable). No dice - they wanted to see numbers north of $20m/year for sizable exit before they'd be willing to put in.. $500k. Those numbers always struck me as insane, but have stuck with me (this was... 15 years ago perhaps now).
- velodrome 12y agoDid you go through with the business? If so, did you end up reaching your goal?
- mgkimsal 12y agoNo, ended up scrapping it. Not just because of that, but it was a small factor.
- tptacek 12y agoIt's understandable why this would irritate you but worth remembering that the VC economics don't work out for reasonable-sized successes. The wins have to pay for the losses, and the win rate is something like 2 in 10.
- JohnLen 12y agoAgreed. Many investors too looking for revolutionary ideas or products rather than general usage products which has proven to be successful.