Mark Gritter (markgritter) wrote,
Mark Gritter

Anatomy of an (un)fundable startup

Naval Ravikant of Venture Hacks/AngelList gave a talk on what makes a startup fundable. But the best part is really the examples of what makes a startup "unfundable":

Market: services, multiple products, desktop software and other dead platforms, conquered markets with network effects, high atom content, too large / too small

Team: sole founders, part-timers, outsourced development, business-heavy, work/life balance, qualitative and vague descriptions

Product: NDA required, raising money to build, launching "next month", "sign up here", building the second version now

(Tintri, obviously, fails on the last count because we had to raise a lot of money to actually build the product...)

Naval lists "Traction" as the best predictive factor, followed by team ("You") and product, with social proof and market as the next factors and the actual pitch/presentation lowest.

In related news, Project Skyway picked its 8 finalists. It was interesting hearing Cem and Casey explain their choices (in the linked video). Of the ones I sorted, 1/2 of my "good"s got chosen, none of my "bad"s, and none of the ones I couldn't understand.

The only one I am really surprised to see on the list is Paypongo; Cem and Casey explained that they really liked the team, and they thought this had the opportunity to be a big, disruptive success. I still feel that they've had long enough to show traction, and it just doesn't seem to be there--- but we'll see. I'm looking forward to the Project Skyway demo day in a few months.

ETA: ...and I did get find answers on Quora about using a broker to find startup financing. The consensus, as expected, seems to be that it's a bad idea:
Tags: startup
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