What things can a VC hear in a pitch that might excite them about a company? originally appeared on Quora - the place to gain and share knowledge, empowering people to learn from others and better understand the world.
At Foundation Capital, we're listening for three major themes: market, technology/idea, and people. We're listening for them in that order, because, first, if there isn't, or isn't going to be, a large market opportunity, then we don't have a chance at a really big exit and that's what our job as venture investors is.
The second thing that we're looking for is the strength of the technology or idea. We used to just say technology, but then along came Netflix, the most well-known company that we've funded, and Netflix was primarily a business-model innovation. And then later we funded other business-model innovations, including Lending Club, Chegg, and others. So now we look at the strength of the technology or idea and how well it fits into the market opportunity.
Third, we look at the people. And it isn't that we think of the team last, it's just that we can't do much to change the market or the market size, and it's hard to change the technology. But we can help with recruiting or bringing in new management. That said, the special sauce in an entrepreneur that we're looking for is someone who has an amazing passion and commitment, combined with a deep domain expertise. Most importantly, we are looking for persistence.
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