Venture capital triage process, part 2: Objective signals, strategic priorities and compelling factors

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Objective signals

Example:

“Our current funding round is closed already, but I thought you might be interested in getting on our waitlist for the next round?”

“Wait! Let me connect you to one of our partners!”

Example:

“Sergey Brin suggested that we might be a good fit for your fund; how about we grab coffee sometime next week?”

“Sure. Let me invite our partners to join us!”

Example:

“We are launching an online marketplace of entertainment services for people who will need no sleep and have lots of spare time.”

“Wait, why won’t they require sleep?”

“They will be taking this new stay-awake pill by startup X.”

“Startup X you said? Can you spell that?”

Example:

The main KPI in consumer mobile applications is user retention after 3 months. If more than 60% of those who install the app are using it regularly after 3 months, this is a clear signal that the developers of the app found a valuable use case. A retention rate of 20% or lower is considered noise level. Anything in between is acceptable from a business perspective, but is not considered an objective signal.

Strategic priorities

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Example:

The whole should-be-a-trillion-dollar industry of AR is on hold for a simple reason: There is no compact projector on the market that can be integrated into glasses. Several companies have attempted to deliver the solution but failed because they underestimated the complexity of the task. Even if your company invests only in AR software and content, not hardware, knowing that the solution is coming to the market is essential, because it will influence the types of software and content that will be produced in the near future.

Compelling factor (Sense of urgency)

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