Do you know if you are VC scalable or backable? Let's change that! #002

This Is How to Write Your Pitch Deck. #002

💰💡 What do investors care about?

Venture capitalists are operating in a landscape where they only invest in a tiny 0.5% of the opportunities they come across, finding elusive startups that have the potential to morph into high-growth businesses and give a solid return on investment starts with being a potential fund returner.

They aim to triple or even quintuple their funds over a span of a decade. But to reach this goal, they need a few successful investments that can pay for all the losses from the ones that will fail.

This approach is pretty standard in the industry, but here's the thing to remember - this isn't just an arbitrary requirement. It's the price of admission to the VC investment game. Because VC accepts to be ‘governed’ by power law, they're dealing with failure rates that are off the charts, with only a handful of investments even returning their initial capital. What they're striving for isn't aligned with the actual outcomes the fund is aiming for.

Every opportunity is looked at through the lens of being a potential fund returner. So, it's vital for you to understand this dynamic and the immense challenge that venture capital investment can be. The VC world is characterised by high failure rates. Your job? To position your startups as a potential fund returner, like every other startup has to if they wish to raise from VC's.