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🧵

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.

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/.