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How to Spot Subprime VC

I saw this post titled "How to Spot Subprime VC" from Georges van Hoegaerden on PEHUB and thought it was interesting.  Here are the highlights:

  1. Seems more interested in how it is built rather than what the disruptive business proposition is.
  2. Seems more worried about cost of development than cost of greenfield customer acquisition.
  3. Talks about valuations before you’ve explained the value of becoming the market leader.
  4. Seems more occupied with categorizing the investment than understanding its unique business value.
  5. Talks about capital efficiency without probing market inefficiency.
  6. Doesn’t question market entry risk, but focuses on cost.
  7. Doesn’t ask about the runway to profitability, but the initial round to get in.
  8. Asks you which other investors you’ve spoken to.
  9. Asks you to talk with his associates first.
  10. Asks you more about your education than your work experience.


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