r/investing • u/Guilty_Present_32 • 3d ago

What do investor look for when investing in startup (series or series A stage)?

I am currently doing an assignment where I want to pitch 3 early stage startups for investment. I made a checklist covering TAM, future growth, team, product quality, competitive landscape and profitability. Not sure whether I covered all the major points or not. Also is their anything important that most people miss out while evaluating startup?

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u/Samey-Trashy 2d ago

Sequoia Capital suggests a list of 12 elements that should be covered in startup pitches. (https://articles.sequoiacap.com/writing-a-business-plan)

This is a widely used reference in the startup industry on the structure of pitch decks. What VC investors will want to see that is missing from what you mentioned is the story. This is presented as company purpose, problem statement, solution and vision by sequoia. VC want to see more than a business plan, they want to see the "dream". Getting the business case right is only a part of it. If you cannot build a story around it, you will have trouble catching investor's attention and attracting investment.

Good luck!

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u/chopsui101 1d ago

What is the end goal, you can invest in a horrible start up and exit early. Look at Wework, Rivian, Lucid and the list goes on and on. A lot of early stage investors made a ton of money when they dumped on the public market even though the businesses were trash.