Company Forensics | Slidebean Deal Breakers for Investors
May 18, 2021
Paul Silva, managing partner at River Valley Investors and co-founder of startup programs, shares insights on avoiding deal-breakers during pitches. He contrasts how different regions prioritize metrics, emphasizing Silicon Valley's focus on rapid growth versus New England's preference for revenue. Paul warns against inconsistent terms across investors and highlights the importance of having a lead investor to rally support. He also discusses effective networking strategies to find sponsor investors and why he mentors founders through office hours.
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Investors Back What They Know
- Investors fund sectors they understand, so geographic clusters form around industry expertise.
- Choose investor locations where there's a cluster that matches your startup's sector.
Match Strategy To Investor Scale
- Different investor strategies demand different founder approaches to valuation and growth.
- Know if investors aim for unicorns or early exits and tailor your terms and traction accordingly.
Show Market-Appropriate Traction
- Show the metrics investors care about for your market: rapid user growth for consumer, revenue growth for B2B.
- Tailor your traction evidence to investor expectations, not a generic metric set.
