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

4 Absolutely Exciting Things You Need To Know About The ‘Crowdfunding Fix’

4 THINGSIt took four years for the Title III of the Jumpstart Our Business Startups Act (JOBS Act) to be officially enforced on May 16, 2016. Investment crowdfunding in the US is heavily regulated as compared to the UK, where regulators have been slightly more lenient which has resulted in Crowdfunding being widely viewed as a success in the UK.

The Congressional “Father” of Title III of the JOBS Act, Rep. Patrick McHenry, introduced the “Fix Crowdfunding Act” into the House of Representatives. Its provisions are focused on Keep reading this post

5 Key Steps Of Investment Due-Diligence

Every investor has his/her own investment strategy and things they look for in promising companies – but there is a must-pass list of questions that helps them navigate the crowded startup space. Here are the basic steps of company due-diligence that Angel groups use to evaluate the potential investment deal. Keep reading this post

Angels & Term Sheets

 

Angels are usually wealthy individuals, former executives, or entrepreneurs themselves who desire to work with smart startup teams. They rely heavily on their instincts, industry experience, and connections when investing in new businesses. Angel investors usually invest because they believe in your idea and that you are the right person to make it reality, so when talking to potential angels, be prepared to discuss your background, expertise and show passion for the project.

Where to find angels:

  • It is smart to reach out to your network and get a warm introduction – people close to you might be excited about investing in your future, and are a good source of recommendations for other potential investors. Keep reading this post