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0/ I've been trying to refine my feedback of "a little too early/risky" into something useful and actionable for founders. Here's where I'm at: there are three questions that I need to *some* evidence of traction on besides a big 'ol "🤷♂️?"
Below👇
Below👇
1/ "Can you build it?" Do you have the team (or affordable outsource devs) to build a version of the product that 'does what is says on the label'... can be MVP but can't be contingent on raising the investment capital.
Ideal: MVP is live with real customers using.
Ideal: MVP is live with real customers using.
2/ "Will people pay for it?" Evidence that your target customers will pay at the price your business plan requires. Not freemium, not an introductory price that's 90% off, full price.
Ideal: >$1k MRR && >20 individual customers currently paying with their credit card.
Ideal: >$1k MRR && >20 individual customers currently paying with their credit card.
3/ "Can you get more customers for it?" Some repeatable channel that can acquire more converting customers, even if 1 by 1, but can't just be a cohort of your friends or colleagues.
Ideal: >=1 organic channel of mostly-passive customer acquisition.
Ideal: >=1 organic channel of mostly-passive customer acquisition.
4/ If you're not quite there yet, the *best* thing to do is create a monthly (or more frequent) email to all potential investors updating them on progress on 1-3. Then investors (or at least I) will reach out when you cross those thresholds
Caveats: (1) these are guidelines for when we will commit to invest, it doesn't mean "don't talk to me until..." - perfectly fine to reach out / apply before (2) like all investors, we will occasionally make bets outside of these criteria.
