What Makes A Venture Capital Investment Successful?

StartWise.com - revenue sharing crowdfundingVenture capital is largely an exercise in intuition and pattern matching. This analysis published last year by the venture capital firm First Round Capital provides insights into the firm’s unique data on over 300 companies and nearly 600 founders, including founder characteristics such as age, gender, education, firm location, and prior work and startup experience. The analysis helped discover several factors that correlate with success.

  1. High-performing investments tend to have at least one female founder. This is a great reminder of the importance of female entrepreneurship and of the opportunity that VCs may be missing out on. Female-founded startups outperformed 63% better than investments with all-male teams – but they are still a minority of investments with approximately 18% of new VC-backed ventures in the U.S. being startups with at least one female cofounder.
  2. Younger founders tend to outperform older teams even though the average age of an entrepreneur is approx. 40 and entrepreneurs improve with age. If we look at companies like Facebook, Apple, Google – the average age of the founding teams is approx. 23. Seems like younger entrepreneurs seem to be a key factor for success.
  3. Keep reading this post


Investing In A Business: 9 Rules To Follow

start-a-biz-part-1According to the Small Business Administration, approx. 500,000 new businesses are started every year in the United States. Obtaining financing for small-business entrepreneurs is often hard and they tend to turn to friends, family or acquaintances for funding. When you face the opportunity to invest in a business, what are the things to look at?

  1. Business funding situation
    The first question to ask yourself is why the opportunity is even available. Did the business try to raise money before, from who and why it didn’t go through – you have to find out the story behind it. While it could throw up a red flag, the inability for an entrepreneur or startup to obtain financing isn’t necessarily a sign that it’s doomed. Keep reading this post

Naturally Entrepreneurial Colorado

Being a part of MergeLane Accelerator program, StartWise team spent last 11 weeks in Colorado. It is a truly Naturally Entrepreneurial State. After looking into approx. 1000 local companies, we came across a few that caught our attention. Some of them are driven by a mission to make the world we live in more supportive and appreciative; others simply came up with an interesting up to date project. What unites them, is the opportunity to address different issues with innovative solutions that work. So here they are:

Sword and Plough is a socially conscious brand that works with American manufacturers who employ veterans. The company recycles military surplus, incorporates that fabric into stylish bag designs and donates 10% of profits back to veteran organizations. Keep reading this post