5 Key Principles Of The Ever-Dynamic VC Investment

Product-Market Fit (PMF)

Within the VC landscape, PMF is a critical milestone, implying that a startup’s offering must deeply resonate with its target market, resulting in substantial and sustainable demand.

Total Addressable Market (TAM)

TAM represents the maximum potential revenue a startup can generate from its entire target market. Investors need to assess whether a startup is operating in a market with enough room for growth and scalability.

MOAT

Every venture capitalist wants to invest in companies that have defensible moats. Defensibility is the extent to which your business is replicable.

Execution Excellence

While a startup may possess a brilliant idea and a sizable market, its success hinges on executing its strategy effectively. 

Founder Market Fit

This revolves around examining the alignment between the founders of a startup and the specific problem they aim to solve.