How Venture Capitalists Make Investment Choices?

  • Great Competitive Products. Investors want to invest in great products and services with a competitive edge that is long-lasting as well as looking for products that are solutions to market problems that haven’t been solved yet or could be solved better.
  • Startup Team. Before investing, VCs will make sure they have sufficient information regarding the business owners and the team itself. Many investors consider the team behind a startup more important than the idea or the product. The investors will want to know that the team has the right set of skills, drive, experience, and temperament to grow the business.
  • Risk Assessment. Investors will take note of all potential risks such as any debt/loan pending, regulatory issues, issues regarding tax and law enforcement as well as a strong management team who knows the efficient use of the capital being invested.
  • Market Size. For VCs, a business will target a large, addressable market opportunity is important for grabbing VC investors’ attention.

What Do Venture Capitalists Look For In Your Pitch Deck?

Before investing, venture capitalists will look for the following in your business plan:

  • Founders. They focus on the founders, the management team, their work ethics and principles and the commitment of the founders towards their business. One of the key factors can also be whether the owners are open to constructive criticism. Are the founders passionate and experienced in what they do and so on. 
  • Market Opportunity. They will look at your business model and see whether there is a need for the product or service or not. How large is the market size and would it be worth investing in, in the long-run, what is the opportunity for growth, if any? 
  • Pitch Deck. How unique is your product or service from those that are similar in the market, are you well aware of your competitors, are your costing and revenue projections realistic and achievable? 
  • Future Plan. Venture capitalists will be concerned about how their money will benefit the business, what progress will the capital injected make to the business.

How Can VC Benefit Entrepreneurship

VCs benefit the entrepreneur not only with providing financial backing to the startup, they work hand in hand with the entrepreneur for the success of the startups. NEXEA’s approach is to pool like-minded investors to act as mentors for the startup’s entrepreneur.

Our focus is delivering not only capital but also the best-in-class support via our exclusive and top-tier mentors, experts, and partners to nurture and build your startup and grow it exponentially. Our technology partners include AWS, Microsoft for Startups, Google Cloud Platform as well as support from Cradle, MDEC and much more.

Apart from technology, grant and sponsors, our mentors are experts have expertise in the following areas: risk assurance experts, transactions experts, tax and assurance experts as well. availability of our panel of experts is subject to their approval on a case by case basis. Available to NEXEA funded companies only.