updated 9mo ago
Your startup idea probably isn’t venture-scale
- The mistake is thinking your startup idea is venture-scale and getting on the VC treadmill. Once you’re on the treadmill, here’s what changes:
- High growth expectations: VCs are looking for companies that grow big enough fast enough. If your business isn’t suited to this kind of rapid growth, it can lead to undue pressure and unrealistic expectation
from Your startup idea probably isn’t venture-scale by Lenny Rachitsky
Britt Gage added 9mo ago
I tell founders to think about the problem they’re solving, specifically my LUV framework:
... See more- Large: Is the problem you’re aiming to solve large enough—customers, users, spend, etc.?
- Urgent: Is the problem urgent to your users/customers—will they be interested in a new offering, change their way of solving this problem today?
- Valuable: Are people will
from Your startup idea probably isn’t venture-scale by Lenny Rachitsky
Britt Gage added 9mo ago
- A simple rule of thumb for what makes an idea venture-scale is having a path to $100 million a year in revenue and hitting $1 billion+ valuation , in 10 years . Essentially, can you get big, fast? This is what VCs need to invest in in order to make their fund economics work. Very few ideas can hit this scale, and it’s important that you recognize t... See more
from Your startup idea probably isn’t venture-scale by Lenny Rachitsky
Britt Gage added 9mo ago