What Startup To Build?
I read Steve Poland’s guest post at Tech Crunch last week. While I enjoyed his post, what I really enjoyed was the image that accompanied it:
OpenView Venture Partners invests growth capital in expansion stage software, internet software, software leveraged services or software based appliance companies that are generating bookings and or revenues of at least $500K a quarter up to $5mm a quarter.
The image above is how we look at companies when we are determining whether an investment in the company today can lead to a successful exit tomorrow for the founders, management team and OpenView.
We don’t need to see a market that is $5B+ (1B+ is large enough to build a great company), but make sure that your solution
- Solves a visible business problem (preferably a must-have versus a nice-to-have)
- Has a targeted market segment with buyers and users identified
- Has an economic distribution model that is appropriate for the market segment
- People are willing to pay you for your solution so you can monetize the company successfully
- Have a core team that OpenView can work with the founders to build out as the company scales
The clearer the proof points are for the above bullets the better the chance that you can work with a venture capital partner to build a great company that everyone can be proud of.
All the best!