Finding the right startups to invest in is a daunting task that could take months. In the screening phase, after receiving interested startup applications, you end up with several factors to go through.
Whether you receive 100 or 1000 applications, there is nothing more irritating than receiving applications you will never invest in. This could include startups in industries or countries you have no interest in.
Our aim is to show you four essential details you should include to avoid this issue and receive applications with a higher potential to catch your interest. These four details can be included in your VeFund’s investment programs and will be visible to every founder that checks your program.
1. Targeted Location
Most investors have a clear vision of where they are planning to invest. Some investors would invest only in startups near their surrounding area. They prefer startups close to their office to allow for more active roles. Others would choose countries based on their economy or startup ecosystem.
Depending on your preference, make sure you set your targeted countries. This helps you avoid receiving applications from startups located in unmatching places.
2. Targeted Industry
Set out the industries you are interested in investing in. This could be based on their potential growth, the capital needed, or portfolio management purposes.
If you’re not open to considering startups regardless of their industry, set out your industry interests to keep your received applications clean.
3. Development Stage
By development stage here we mean the series stage. Are you interested in investing in pre-seed, seed, or series A, … etc?
Investors mostly settle on the stage of development by their risk preferences or passion. Some investors prefer to help startups in specific stages: ideation or expansion stages for example.
However, if you plan to invest in multiple stages, we highly recommend creating a separate investment program for every stage. Startups at different stages have different metrics and aspects for evaluation. You will need to ask different questions if you are evaluating a pre-seed startup than a series A startup.
4. Check Size Range
Check size ranges are dependent on the amount of capital you invest and the investment strategy. If you’re not sure how to set up your check size, watch Y Combinator’s Michael Seibel insights on angel investing.
You can screen and manage all your investment programs with VeFund. Set out your interests and receive applications from matching startups in a smooth process. Sign up with VeFund from here.