venturecapital

Investors often overlook the next big thing and I have tried to understand why.
Note that this challenge is particularly palpable & relevant at pre-seed.

Threadcast🧵

Due to the lack of metrics available, which factors influence whether an investor is prepared to make a risky bet on a startup’s future potential?

The dynamics of pre-seed skepticism have important implications for both founders and investors.

Learn more in my latest article for IMD: https://www.imd.org/ibyimd/finance/why-investors-often-overlook-the-next-big-thing/.

When a pre-seed investor passes on a deal opportunity, it doesn’t necessarily mean that the venture is doomed to fail.
Rather, it is more of a reflection of the challenges that VC funds face in assessing new ventures that are disrupting existing markets, as well as their overall risk appetite and investor bias.