How can you choose the best entrepreneur to invest in when multiple offers are on the table?

It's not a fair/straight question on which entrepreneur to pick, when multiple offers on table (meaning entity)...but let me weight in... In Horse & Jockey paradigm, i and may suave VC pick the jockey. A good jockey can always ride another horse & tame different animal if needed. A entrepreneur is the most critical in the entire value-prop equation, it may not be said out loud enough, talk is often of biz & numbers, but attention is always on the entrepreneur, will be a.. - ~ Good leader with humility ~ Ability to take in lot of criticism ~ Ability to understand and maneuver complex scenarios ~ Ability to take his founding team along ~ Ability to own up everything ~ Ability to absorb pressure I guess that's that, cant cram more here :)

The most important skill that the founding team must have is being able to attract the best talent for executing the vision. Also, having a critical thinking regarding the product market fit and the ability to change and adapt into value generation and monetizing.

Three skills are vital in the core team. - Someone that can build - Someone that can sell - Someone to keep things in check Make sure these three skills are covered. Secondly, it's good if the founders have personally faced the problem they're trying to solve. Finally, make sure their aspirations are backed by their values. Everyone aspires to be the next Steve Jobs, but do they have the work ethics?

The team is by far a major component of success. What I have observed that succeeding companies have the best teams: - most of the time humble : this reflects in the way they can receive and handle critics - hard working : there is no shortcut to success - inspiring engagement in other : this can be seen the way internal or external actors follow them (as an example: I am giving advice to a very promising start-up, even though the framework of advisory is not yet defined.The CEO knows how to inspire trust and engage) - Have a clear idea of their force and their short coming : this translate in a clear timeline definition. More a company respects the plans, more they can inspire trust with investors and manage the budget Beware about team!

The adage 'bet on the jockey, not the horse' is particularly apt in venture capital. A capable team can pivot and adapt to market demands, turning even a mediocre idea into a success, whereas a weak team can squander the best of opportunities. When assessing teams, I delve beyond their resumes to understand their problem-solving abilities, resilience, and complementary skill sets. Teams that demonstrate a blend of technical prowess, business acumen, and emotional intelligence tend to stand out. Moreover, a history of overcoming adversity is a strong indicator of a team's potential to navigate the startup journey.

In the realm of product assessment, I look for what I call the 'hook' – a unique feature or approach that sets the product apart. It's not just about the problem being solved, but how it's being solved differently. A product with a clear value proposition, that's easily understood and addresses a significant pain point, signals a strong opportunity. Additionally, evidence of customer engagement and feedback loops are key indicators of a product's potential to evolve and capture market share.

Look for a product that have its own unique selling point. And key combine that with a founder team does not have this phrase "cannot be done" in their mental. Startups is a long hard road and a team that never give up and does not have this phrase cannot be done will be the one that make it. I been in sales and development my whole life, me like to tell my kids if everyone who say no to daddy and I accept it, there be no food on the table for sure each day

Market fit is EVERYTHING. Great products there that are way ahead of their time and don't yet have a market are useless. I experienced this when in 2012 we built a kickass employee engagement SaaS platforms for remote work But we were 8 years ahead of the remote work movement and the use of voice heuristics and thus it did not sell. So dont start with a product; start by identifying a market with a problem that needs a product to solve it.

Absolutely, the product is more than a solution—it's about addressing a burning problem with a sense of urgency. We're actively seeking entrepreneurs whose innovations are not only groundbreaking but also highly adoptive. For us, it's crucial that the product not only delivers clear value but also promises a solid return on investment. We're eager to back solutions that stand out, addressing real needs and reshaping industries.

Product uniqueness and market fit must be revalued. Today, adaptability and integration with global digital trends are crucial. Great products now anticipate future issues and possibilities. It would be best to have entrepreneurs who understand market demands and predict the impact of quantum computing and biotech. Integrating these innovations into their company model is vital. In a world increasingly concerned with ethics, a product's social and environmental responsibility adds value and is essential. The aim is to uncover entrepreneurs who lead the market by creating products that fit tomorrow's ethical and technological landscapes. I can say that we should invest in people who innovate and responsibly shape the future.. Do we? 🤭

Win the heart ❤️ Win the mind 🧠 Win the wallet 💵 Lead with your personal story. You are the star of your show, with the pitch being the business plan for it. But it’s not a therapy session. Don’t over share and be professional and well practiced. Keep an FAQ doc from each pitches and refine your answers so you nail all of them. Good 🍀

Again, if this is their first rodeo, rest assured, the pitch will be all over the place. Storytelling doesn't come naturally to most, so you need to have patience. If you don't, think about getting involved in startups that are mature. In the pitch, what you should be looking for is unique insights. What do the founders know that is not obvious to most people. Unique insights > sleek pitch

The pitch is often where I gauge an entrepreneur's ability to sell – not just to customers, but to potential employees, partners, and investors. A great pitch is a blend of storytelling and data-driven insights. It should reflect a deep understanding of the market, a clear business model, and a vision that’s both ambitious and achievable. The entrepreneur's ability to articulate their business in a compelling and coherent manner is often reflective of how they will navigate future investor and key stakeholder meetings.

It depends greatly on the stage of the company and the tangible validations a company has. The earlier the stage (e.g., Angel/Pre-Seed), the more the company depends on the "story" and the foundation of the founders. The more advanced a company gets (e.g., Series A/B), the more real tangible measurements matter, such as CAC, retention rates, monthly growth, etc. Each stage has unique challenges, and each business model (B2B, B2C, D2C, etc.) requires different validations at each stage.

In evaluating startups, the pitch is crucial. Investing in entrepreneurs requires an articulate presentation of vision, strategy, and goals. Assess storytelling, presentation, and negotiation skills. Effective pitches capture attention, generate interest, and spark curiosity. Evaluate their ability to address questions, concerns, and objections. A compelling pitch demonstrates credibility, confidence, and enthusiasm, essential elements in instilling investor confidence and interest in the entrepreneurial venture.

Usually, VCs assess the fit between the company and their investment thesis first. There is no point in moving forward with a company outside of one's investment strategy, round size, and/or vertical - otherwise, it becomes a gamble and not an investment. Regarding the fit, it's vital to assess how the team thinks about the upcoming rounds if they know what they need to do to achieve them. We have seen insane terms in 2020 and Q1/21, and some founders still base their assumptions on them. This is another indicator that the founder is realistic and understands how VCs make decisions and why they invest in founders.

Two items are key: (1) fit of investment thesis; and (2) ability to connect with the team. There’s always good deals that come before an investor, but if they don’t fit thesis, including size, stage, and industry, they are probably a better fit for those who can add value in that specific space. And as to team, investments are like marriages (sometimes longer 😂) and so you have to be able to have honest, direct conversations with the team without either party wanting to strangle the other and not get to a productive outcome. The key to investing is the ability to walk away, not get emotional about it, and know some things will just end up on your anti-portfolio.

First-time founders often waste their time with VCs because they don't bother to know their thesis. Investors have a thesis, which is a compass to investment. It should include what sector, specific verticals, location, and (maybe) amounts on investment. From there, the VC looks at passion, numbers, profit, backgrounds of the founders, and numbers of the users and community. Each VC has its own secret sauce and often a committee to evaluate the company.

Fit is about alignment – with my fund's investment thesis, sector focus, and risk appetite. A startup may be exceptional, but if it doesn't align with my fund's strategy, it's not a viable investment. This is where understanding my own investment thesis and risk tolerance is crucial. It's also about the synergy between the startup and the existing portfolio – can there be cross-pollination of ideas, networks, and expertise?

There is a target company for every type of investor and there is an investor for every (investment grade) company. One one the reasons for a structuring a sales / fundraising process is exactly to find the investor-company fit. In Slovenian we have a saying: “Birds of the same species fly together,” which is very true in the investing world as well. Not having to deal with a constant psychological pressure of the counterparty in the corporate partnership unlocks laser beam focus towards the same business direction. Otherwise a lot of time, energy and effort is spent solely on structuring the communication to align with the perception of the other side, not to mention the tendency to avoid it or even hidding the adverse information.

A few traits that many don’t speak about are empathy, humility, and accountability. ▪️Empathy - Having entrepreneurial experience is helpful to understand the chaotic journey and understand our role as investors to not only focus on numbers, but also on mental health, leadership alignment, the adaptability and listening skills of the team, and much more. ▪️ Humility - Humility is foundational to successfully asking for help and making necessary adjustments. ▪️ Accountability - Taking responsibility and being able to communicate the ups and downs for your stakeholders requires a leadership team that owns its decisions. These may sound simple or soft but it has been the difference in the success or failure of ventures. Good luck!

Investing in a startup is akin to entering into a long-term partnership. Trust and mutual respect are paramount. I look for founders who are open to feedback, willing to engage in honest dialogue, and show a genuine interest in leveraging the value-add that I, as an investor, bring to the table. A relationship fraught with tension or misalignment of values is a red flag, regardless of the startup's potential.

Particularmente, busco por parcerias de longo prazo. Não se constroem parcerias longas sem confiança e transparência. São traços fundamentais.

key factor 🫂 sharing openly the boundaries of the entrepreneur-investor alliance helps both sides in building and meeting their reciprocal expectations

The relationship prompt question is nice, however, everyone is usually on their best behavior during initial meetings. Before any serious conversations begin, I believe it is imperative to have lunch with the person. Identifying the person's level of EQ (emotional quotient / the funny feeling in your gut when you someone is attempting to take advantage of you ) and IQ (intelligence quotient / brain power) is imperative. My goal is to train my weaknesses and be humble when using my strengths. No one enjoys a high EQ person who talks for 10 min about themselves while never engaging the other party. DM me on my LinkedIn page if you like or dislike anything I wrote. I have thick skin and enjoy direct feedback.

Decision is a nonlinear equation of: - product (how solid it is (technical-wise) & how it meets its market (business-wise)) - competitor analysis (how it is positioned within the market, even better is it creating a new segment or market) - clarity of conciseness of pitch - team Each is the sine qua non pillar of the result of choosing the startup. In my experience as a jury member for European fund allocating structures, missing one pillar is a fatal error. I met promising products in hands of a not well connected team or pitched poorly: that ended up not chosen. A great pitch is the magic ingredient that will make the road more fluid and easier for both decision maker and the start up.

Decision-making is a blend of art and science. While data and analysis are critical, so too is intuition – honed from years of experience. A key aspect is understanding and being comfortable with the risk-reward profile of each opportunity. It's also about being decisive; indecision can lead to missed opportunities or a weakened negotiating position.

It's crucial that you have an investment committee that can take viewpoints on the same company from different angles — having someone with deep industry experience and a technical person who can assess the feasibility of deep tech solutions. The more layers/angles a solution has, the more diverse in terms of viewpoints should be the investment committee.

Amid a sea of entrepreneurial talent, the beacon of the ‘best’ investment often lies in the intersection of passion and strategy. Seek the visionary who not only dreams but crafts a roadmap to turn dreams into reality. My S5 formula: 1. Solution: Is it the key to a problem’s lock? 2. Simplicity: Can investors and consumers effortlessly embrace it? 3. Scale: Is the pitch a launchpad for business liftoff? 4. Sustainability: Beyond scale, does it withstand the test of time? 5. Success : Feel the fire! How hungry are they for success?

there is no rule-of-thumb because each opportunity is unique on its own context. Some data points which I will factor into my decision making process: price entry point, story (market opportunity, problem & solution, founding team), risks (underlying risks and how to mitigate them) & rewards (returns and exit probability)

In the end, this AI-generated question is somewhat obsolete. It comes from a time when there were more good teams and projects than money available to fund them. Today, the money has multiplied by a factor of ten: the competition among VCs to get into the attractive deals has skyrocketed, and it's the entrepreneurs who get to choose who invests in their projects. So the question should be the reverse: how can entrepreneurs choose the best investors?

Idea. Team. Product. Money. Returns. Market. Etc etc. If all are constant. The one we end up selecting is the one we like. We always (not only in pe Vc business) find a way to work with people we like. That’s normal human reaction. The most likeable person is an automatic bet if all other factors are constant.

One area often overlooked is the scalability of the business model. A startup needs to demonstrate a clear path to scaling its operations, customer base, and revenue. Additionally, the regulatory landscape can significantly impact a startup's future, so understanding and anticipating regulatory hurdles is key. Another consideration is exit potential – understanding the likely exit scenarios and the time horizon for a return on investment. These factors form the crux of my investment decision-making process. It's a blend of diligent analysis, instinct, and a deep understanding of the startup ecosystem.

Timing, all of the above should be multiplied by timing as the wrong timing will obliterate most of the pluses and magnify minuses. How to know when is the right time, well there is no recipe but this is where one's professionalism and experience makes a difference.

The one with the most exits. Bet on the jockey, not the horse. Too many people follow the idea we don’t see the human component required for executing success.