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At the pre-seed stage, when the creator has a concept, the founder’s background, educational qualifications, domain experience, previous ventures, market size, and the complimentary talents brought by the cofounders are some of the most critical variables to consider before investing in a startup.
Have domain expertise in an emerging area that the VC cares about and wants to develop more authority and dealflow around. A number of funds that invest in growth-stage companies have established sourcing teams that essentially cold-call founders and track them over a long period of time. ” That’s pretty much it.
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