Giovanni B. Sestili’s Post

15 Questions Venture Capitalists Will Ask Before Investing in Your Startup 1. Is There a Great Management Team? Investors prioritize the skills, experience, and drive of your team. 2. Is the Market Opportunity Big? Demonstrate the scalability and potential of your business. 3. What Positive Early Traction Has the Company Achieved? Showcase early traction and explain how it can be accelerated and scaled. 4. Are the Founders Passionate and Determined? Highlight the dedication and resilience of the founding team. 5. Do the Founders Understand the Financials and Key Metrics of Their Business? Prove your grasp of financials and key business metrics. 6. Has the Entrepreneur Been Referred to Me by a Trusted Colleague? Warm introductions through trusted contacts are highly valued. 7. Is the Initial Investor Pitch Deck Professional and Interesting? Ensure your pitch deck is compelling and well-prepared. 8. What Are the Potential Risks to the Business? Identify risks and explain your strategies for mitigating them. 9. Why Is the Company’s Product Great? Clearly articulate the uniqueness and value of your product or service. 10. How Will My Investment Capital Be Used and What Progress Will Be Made With That Capital? Detail your capital utilization plan and anticipated milestones. 11. Is the Expected Valuation for the Company Realistic? Manage valuation discussions to ensure they are reasonable and attractive. 12. Does the Company Have Differentiated Technology? Highlight any unique technology your company possesses. 13. What Is the Company’s Intellectual Property? Emphasize the importance and uniqueness of your intellectual property. 14. Are the Company’s Financial Projections Realistic and Interesting? Validate your financial projections with reasonable assumptions. 15. Is Your Legal Formation Clean and in Compliance with Applicable Laws? Ensure your company’s legal status is clear and compliant. At BusinessPlanProvider.com, we empower entrepreneurs to confidently address every critical question venture capitalists ask. Our expert team offers comprehensive support in crafting investor documents that highlight your management team's strengths, market potential, early traction, and financial acumen. We ensure your pitch deck is professional, your risks are well-mitigated, and your product’s uniqueness is compellingly articulated. From realistic financial projections to legal compliance, we help you present a complete and attractive investment opportunity. Partner with us to make your startup stand out and secure the funding you need. #entrepreneurship #business #startups #success #investors #entreprenurs #funding

THINK LIKE AN INVESTOR If you are part of the start-up world you are or are becoming well aware that it is a high-stakes arena where innovation attempt’s to meet capital. Jazz Ventures, LLC understands the common pitfalls which are crucial for our them to making sound investment decisions.   We work to prepare our clients to meet and impress investors. We know that our investors will carefully evaluate a startup's market potential, financial health, team dynamics, and timing which are all essential to mitigate their risk and increase the chances of a successful investment. Without having these areas in place, investors will discard even the most innovative idea. While the allure of substantial returns is undeniable, the reality is that the vast majority of startups fail. A brilliant idea is worthless without a market that desires them and a plan to reach them (business model). Many founders underestimate the costs associated with launching and scaling business.  One of the keys is to show financial management past and projected future. Without a solid financial plan and a keen eye on expenses, running out of money can be inevitable which begins the constant chase for money taking the founders eye off the ball.  A strong, cohesive team and leadership complementary skills is also essential for navigating the challenges of building a business.  The ability to differentiate your product or service and the timing can be everything. Economic downturns, industry shifts, or the emergence of competing products can all impact a startup's chances of success. By understanding these common pitfalls, founders can better prepare for the potential of their startup and help investors make informed decisions. #Differentiate #BusinessModel #Financials #Navigate Mary MacCarthy, MBA Kathy Vignau, M.A. Thomas Bregmann

Thinking about securing funding but unsure if your startup is ready? This checklist highlights the key ingredients investors crave in early-stage ventures: ➡️ Clear Value Proposition: What problem does your product or service solve? How do you stand out from the crowd? (Articulate this, and investors will be hooked!) ➡️ Market Potential: Is your addressable market big and growing? Do you deeply understand your customers, competitors, and industry trends? (Investors love solid market research!) ➡️ Traction & Milestones: Show tangible progress - user acquisition, revenue growth, product development. Prove your business model is working! ➡️ Team Competence: Investors back teams more than ideas. Showcase expertise, commitment, and shared vision. Build confidence they're backing the right people. ➡️ Scalability & Profitability: Demonstrate how you'll grow rapidly and achieve sustainable profitability. Present a realistic financial model and a clear plan for the funds you seek. ➡️ Unique Differentiators: What makes your startup irreplaceable? Highlight your competitive advantage - technology, IP, or a unique approach. Stand out in the crowded market! ➡️ Exit Strategy: Show investors how they'll exit and earn a return. Discuss potential acquisitions or IPO plans to assure liquidity. ➡️ Legal & Regulatory Compliance: Proactively address potential legal or regulatory risks. Show investors you can navigate any challenges. ➡️ Effective Pitch: Craft a passionate, expert pitch that showcases your venture's potential. Make a lasting impression on investors! ➡️ Post Copy: Securing early-stage funding is crucial, but not every startup fits the bill. Understanding what investors seek makes all the difference. By addressing these elements and presenting a compelling case, you'll attract the right investors and propel your startup to new heights! P.S. Share this post with other ambitious founders who need this guidance! #startups #funding #investors #entrepreneurship #business #checklist #fundability

🧠 𝗕𝗿𝗶𝗱𝗴𝗶𝗻𝗴 𝘁𝗵𝗲 𝗖𝗼𝗻𝘁𝗿𝗮𝗱𝗶𝗰𝘁𝗶𝗼𝗻𝘀: 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 & 𝗘𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵𝗶𝗻𝗴 𝗮 𝗛𝗶𝗴𝗵-𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗶𝗻𝗴 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗕𝘂𝗶𝗹𝗱𝗲𝗿 🚀 "The test of a first-rate intelligence is the ability to hold two (or more) opposed ideas in the mind at the same time, and still retain the ability to function." – F. Scott Fitzgerald 📚 In corporate venture building, professionals have to master at least four key fields of conflict of interest to create ventures that innovate while aligning with the strategic interests of their corporate backers. Here’s what they are and ways how to navigate them: 💼 𝗜𝗻𝘁𝗿𝗶𝗻𝘀𝗶𝗰 𝗧𝗲𝗮𝗺 𝗠𝗼𝘁𝗶𝘃𝗮𝘁𝗶𝗼𝗻 Balancing entrepreneurial passion with corporate loyalty & best practice is critical and likewise challenging. Team members must be excited by the opportunity to build from scratch while still respecting corporate values and goals. Venture builders should view the corporate environment as a strategic advantage, leveraging corporate assets to accelerate growth. 💰 𝗧𝗲𝗮𝗺 𝗜𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 While the allure of startup-like financial rewards may exist, venture builders often face the reality that corporate structures impose limitations on those rewards. However, the strategic alignment with corporate objectives can offer long-term value and stability. Corporate venture builders should value strategic impact and long-term success over immediate financial gain. 🌟 𝗩𝗶𝘀𝗶𝗼𝗻 𝘃𝘀. 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 Building ventures requires balancing the bold vision needed to launch new businesses with the necessity of aligning with the parent company’s long-term strategic goals. Successful ventures align disruptive ideas with corporate missions. 🎯 𝗔𝘁𝘁𝗶𝘁𝘂𝗱𝗲 𝗧𝗼𝘄𝗮𝗿𝗱 𝗨𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆 Corporate venture building involves embracing startup-like risk and uncertainty, which can clash with the corporate preference for stability and predictability. Leadership needs to create a culture that accepts rapid experimentation and failure as stepping stones to innovation. Transparency, agile methodologies, and iterative processes help venture builders navigate the inherent uncertainty of new ventures while managing corporate risk tolerance. 💡 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝘃𝗲𝗻𝘁𝘂𝗿𝗲 𝗯𝘂𝗶𝗹𝗱𝗲𝗿𝘀 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗼𝘂𝘀𝗹𝘆 𝗯𝗮𝗹𝗮𝗻𝗰𝗲 𝘁𝗵𝗲𝘀𝗲 𝗼𝗽𝗽𝗼𝘀𝗶𝗻𝗴 𝗳𝗼𝗿𝗰𝗲𝘀 𝘁𝗼 𝗱𝗿𝗶𝘃𝗲 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝘄𝗵𝗶𝗹𝗲 𝗲𝗻𝘀𝘂𝗿𝗶𝗻𝗴 𝗮𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝘄𝗶𝘁𝗵 𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗼𝗯𝗷𝗲𝗰𝘁𝗶𝘃𝗲𝘀. Their ability to manage these contradictions is what propels ventures toward success in the market and within the corporation. #CorporateVentureBuilding #Innovation #VentureBuilding #StartupSuccess #BusinessGrowth #SustainableFuture #Entrepreneurship #CorporateStrategy

Startup valuations are crucial for founders navigating the fundraising landscape. Here are some key takeaways to keep in mind: 1. Valuation Dynamics: The valuation of a startup is more about investor demand than the company's actual worth. It’s a negotiated figure between founders and investors during fundraising rounds. 🤑 2. Influencing Factors: Several factors impact a startup’s valuation, including revenue, founder experience, market competition, macroeconomic conditions, and investor demand. 📊 3. Valuation Types: Pre-money valuation refers to the company’s value before investment, while post-money valuation includes the new capital injection. You can determine the pre-money valuation by adding your assets and the money spent on building your assets. 📈 4. Cap Tables: These show ownership percentages. Founders usually get common shares, whereas investors receive preferred shares with different rights. 🏦 5. Employee Stock Options: Typically vest over four years with a one-year cliff, incentivizing long-term commitment. 6. ESOPs: Employee Stock Option Pools are essential for attracting talent, with investors often expecting 10-15% to be set aside. 7. SAFEs: Simple Agreements for Future Equity don’t immediately appear on cap tables, which can obscure ownership percentages. 📢 Higher valuations aren’t always better—they can reduce investor incentives, complicate future fundraising, and affect employee stock options. 🚩 Check out this free valuation tool to see how much your SaaS tool is valued at: https://lnkd.in/gbhvQ3ZN 🔈 For more insights and strategies on startup valuations, feel free to connect and share your experiences! #StartupValuation #Fundraising #StartupGrowth #Entrepreneurship

This Forbes article highlights important questions that all founders should consider before approaching investors. There's a lot to cover! We work very closely with our founder clients to ensure that they are absolutely investor ready when researching and approaching investors for their businesses. Fundamentally, our clients will all demonstrate 5 Key Attributes when our experienced partners get involved with supporting founders on their journeys... - There will be a 'Big Idea' - A clear proof of demand - A plan to scale - Founders and management who can deliver - Comprehensive, but simple, financial model Being prepared for a thorough evaluation by any investor is essential - this article has some great examples of questions, covering all aspects of an early-stage business... #earlystageinvesting #startupfunding #entrepeneur #vcfunding #angelinvesting

In the modern business world, few ideas are more important than growth. Even long-time stock market fixtures like McDonald's and General Motors are judged by their quarterly growth rates. And a failure to grow can be catastrophic. However, scaling is critical for younger companies—mainly startups—but interestingly, few entrepreneurs address this aspect convincingly when pitching. Even more interesting, few VCs can explain "scale" simply. So, what's the difference, and why does it matter? Scaling is about increasing revenue from one resource unit or doing more with less. It is about making the business more efficient and improving its unit economics over time. It means constantly aligning the rocket to go faster by following the optimum trajectory. Examples of high-level metrics that are signs of scaling companies are an increase in recurring revenue, lead velocity rate, or decrease in the cost of sales. Growing, instead, is about acquiring and allocating resources. It is about raising funding and using it to recruit salespeople or expand to other geographies. It means adding more fuel to the rocket so that it can go further. The main high-level metrics showing growth are revenue increase, the pace of past fundraising rounds, and headcounts. Now that those definitions are set, one can make one first remark. Companies showing high growth are plenty nowadays, whereas those showing good scaling remain scarce. Our firm is called Scale Stories and People Ventures (SSPV Capital) because we help founders 📍clearly define their stories, 🤝 find the right people, and 🚀scale their new business ventures into successful enterprises with a positive impact. #SSPVCapital #YourImpactVenture #VentureCapital

𝐇𝐨𝐰 𝐭𝐨 𝐜𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐦𝐚𝐫𝐤𝐞𝐭 𝐬𝐢𝐳𝐞 𝐮𝐬𝐢𝐧𝐠 𝐚 𝐭𝐨𝐩-𝐝𝐨𝐰𝐧 & 𝐛𝐨𝐭𝐭𝐨𝐦-𝐮𝐩 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡 Market size is typically one of the first things VCs consider when evaluating a new investment. The reason is because VC-backed businesses need to reach a certain scale in order for investors to return capital back to their Limited Partners (LPs). Often times you’ll hear the golden valuation is $1 billion (aka unicorn valuation). Not all businesses need to reach that valuation for investors to be successful, but they do have to reach large scale. Given the scale required, you can start to see why VCs care so much about the market size. It’s because big businesses can only be built in big markets, as PearVC once said. So how do you calculate market size? 𝐓𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝐭𝐰𝐨 𝐦𝐞𝐭𝐡𝐨𝐝𝐬: 𝟏) 𝐓𝐨𝐩-𝐝𝐨𝐰𝐧 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡 𝟐) 𝐁𝐨𝐭𝐭𝐨𝐦-𝐮𝐩 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡 Bottom-up approach is more widely used by VCs because it takes into account a startup’s business model, meaning it’s more tailored specifically for that business. Top-down is less useful because it starts with an overall industry size and then takes a percentage of the overall size to estimate the startup’s total addressable market (TAM). Whether you’re a VC or a founder, understanding how to calculate a market size using these two approaches will be critical in evaluating the exit potential of a particular business. See a step-by-step example: https://lnkd.in/gPRDcNtd #venturecapital #startup #founder #recruiting

Navigating Startup Valuation: Strategies for Equity Preservation, Fair Valuation, and Speed 🚀 ______ For startup founders, balancing the act of securing funding at a fair valuation without sacrificing too much equity is challenging. Below, I've summarised key strategies to deal with this topic effectively: 🤝 𝐂𝐡𝐨𝐨𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐑𝐢𝐠𝐡𝐭 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐖𝐢𝐬𝐞𝐥𝐲 Selecting the right investors for your startup is more than just securing capital—it's about finding partners who align with your vision, mission, and company culture. It's essential to seek investors who not only bring financial resources but also offer industry expertise and a valuable network. As a startup, you may be willing to allocate equity in exchange for the right investor logo on your deck or cap table. However, it's crucial to strike a balance between attracting investors who support your company's development and avoiding those who merely offer financial backing without contributing to your growth. Building an investor crew onboard who actively engage in your company's success can be more beneficial in the long run than simply opting for the highest bidder at the outset. ⚠️ 𝐓𝐡𝐞 𝐃𝐚𝐧𝐠𝐞𝐫𝐬 𝐨𝐟 𝐎𝐯𝐞𝐫𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 Pursuing an initial high valuation, one that exceeds fair market value, can be a double-edged sword for your startup. While it may seem advantageous, it might lead to a down round, diluting equity and potentially damaging investor relationships and support. Conversely, opting for a more modest valuation provides your startup with breathing room to expand without the burden of unrealistic performance expectations. An unexpectedly high valuation, especially one that surpasses fair market value, may prompt early investors to divest sooner than anticipated. This premature exit could send the wrong signal to existing and potential investors, making future fundraising efforts more challenging. Furthermore, there's a risk of spending excessive time and resources on fundraising activities rather than focusing on business growth. Finding the proper equilibrium between securing investment and effectively advancing your company's objectives is paramount. 💡𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 Securing funding and managing startup valuation is not inherently complex but certainly demands a subtle approach. This involves striking a delicate balance among various elements, including speed, maintaining equity value, and nurturing investor engagement. By opting for a realistic valuation and aligning with investors who share your long-term vision, you pave the way for a successful and sustainable future for your startup. ______ Challenges sound familair? Reach out! #VentureCapital #Startups #Finance #Business

Exploring Growth Opportunities vs. Safe Bets Key Criteria for Investing in Start-ups As an entrepreneur and investor, I've had the privilege of witnessing countless start-ups bloom and thrive. But behind every successful investment lies a strategic approach and careful consideration of key criteria. Here are some insights from my journey: 1. Vision & Scalability: Does the start-up have a clear vision for the future, coupled with a scalable business model that can withstand market fluctuations and expand rapidly? 2. Team Dynamics: A strong and cohesive team is the backbone of any start-up. Look for founders with complementary skill sets, a shared vision, and a track record of execution. 3. Market Potential: Is there a genuine need for the product or service? Assess the market size, competition, and growth potential to gauge the start-up's viability. 4. Traction & Validation: Positive user feedback, early adopters, and initial revenue streams are indicators of traction. Look for start-ups that have validated their concept and are gaining momentum. 5. Risk Management: While start-ups inherently carry risks, mitigating factors such as a diversified customer base, solid partnerships, and a clear risk management strategy can minimize uncertainties. Investing in start-ups is not just about identifying the next big thing; it's about making informed decisions that maximize returns while minimizing risks. What are your key criteria for investing in start-up's? #mihirkjhaveri #investing #startupinvestment #importantpoints #startups