Read the full GoodCrowdinfo article and watch the interview here: http://bit.ly/1YY6RXP. Subscribe to this podcast on iTunes by clicking here: http://bit.ly/ymotwitunes or on Stitcher by clicking here: http://bit.ly/ymotwstitcher. Todd Crosland, CEO and Founder of Seed Equity Ventures, which sponsors our work, is a Finra-registered broker dealer that provides investment banking services, especially capital raising, for startups. Todd says that the firm reviewed about 600 submissions in 2015 and put up eight for funding on the company’s international crowdfunding platform. In other words, the firm can be as selective as any venture fund in the country. Today, I asked Todd to explain the Seed Equity Ventures investment criteria so interested entrepreneurs can tune their submissions before sending them in. Here’s what he gave me: Proven Management. The management team is one of the most important considerations we look at when evaluating companies. In particular, we look for solid founders that have a proven track record of building, scaling, and eventually selling the company or taking it through an IPO. The maturity and experience of a founding team is essential in building a company that will be sustainable, not only from a cash flow perspective, but also from the perspective of its corporate culture. We also look for founders that are enthusiastic and optimistic, while simultaneously understanding the challenges that every young startup faces. The Market. We look for companies that are competing in markets of at least $1B. We especially look for companies that are looking to disrupt a large market that has not seen much innovation. The Business Model. Companies must demonstrate that their business model has been well thought-out, with at least minimal validation, is scalable, and is sustainable in various market conditions. Traction. In general, a company must have traction and growth in either the number of users, revenue, or both. Significant month over month growth is a key indicator. Exit Strategy. We look for investments that have several potential exits. We specifically look for investments that have a potential exist between two and five years after the initial investment. Potential exits include a sale, merger, spin-off, or IPO. Our team has previously founded, sold, and purchased companies, and we will use this experience to help our portfolio companies find the best possible exit. Read the full GoodCrowdinfo article and watch the interview here: http://bit.ly/1YY6RXP. Please consider whether a friend or colleague might benefit from this piece and, if so, share it.
#387: Tips for Entrepreneurs Pitching Seed Equity Ventures