What do Investors Look for in a Successful Startup?

Estimated read time 2 min read

Article by Mark Peter Davis

SeedInvest, a New York-based equity crowdfunding platform,�sat down with Mark Peter Davis, Managing Partner at�Interplay Ventures,�to discuss investing best practices, recommended startup due diligence, and common startup investing nuances.

Here are the key takeaways from the discussion:

Should you invest in a startup with a�huge market, an�incredible team, or�phenomenal technology?

  • The key is to invest in a company that has some degree of each
  • �We�re trying to check all of the boxes at the sufficient level�
  • You should never sacrifice two of the three for just one strong area

What do investors look for when searching for successful startups?

  • Pinpoint the company�s core function
  • Analyze whether or not the core team/CEO can efficiently execute that core function
  • Organized and emotionally intelligent entrepreneurs

�Wait for the one where you can�t believe you�re going to get in�that�s when you should invest�

Do you have any startup investing advice?

  • Don�t be too quick to rush into a deal
  • Don�t be afraid to pass on a company that isn�t fully there
  • There are always similar companies to examine

Are there any nuances to startup investing?

  • If a company is targeting a narrow customer base, things can go wrong quickly
  • Always look for momentum in product development and �be able to see milestones of progress made over time�
  • Look out for possible friction between startup founders
  • While there are some common nuances, there are just as many unique ones
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