Venture finance

Venture finance

Write 2 or 3 paragraph to answer the question, after read the article
Link to Article for this week’s discuss board:

Abstract of Article:

This article discusses what investors look for in start-ups. I find this article interesting because as we know, most start-ups usually fail in the beginning. As discussed in this article, there are three factors that the venture capital firm Andreessen Horowitz looks for when evaluating a new start up:

The first factor is an assessment of the technology. Is the technology durable and can it evolve over time? As markets change can the product change to solve new consumer problems. According to the article, �Having a rockstar product is a starting point, but needs to come along with mental agility.�
The second factor looks at the potential demand and profitability of the product? In the long run will the market grow from a niche market to a more mainstream market? According to the article, the VC firm Andreessen Horowitz �is looking for entrepreneurs building startups that can hopefully go public and be a billion plus dollars in market cap�. If the product has little demand in the long run, the firm would not invest in it.
The third factor discusses the importance of having an experienced entrepreneurial team versus an entrepreneurial team that only has a brilliant idea. Assessing the goals of the entrepreneurs and knowing that the product idea is rooted in an overarching �goal or mission� versus just being a �cool idea� is also extremely important.

Discussion question:

What are your opinions on the methods that this venture capital firm uses to evaluate new start-ups? As an investor, what additional factors would you use to evaluate a new start-up?

Get a 10 % discount on an order above $ 100
Use the following coupon code :