1. How VC Investors
Evaluate
Startups
(Before Investing £1-5m)
@fogeldavid

2. 6 Years12 Years
Head Of Acceleration @Wayrauk

6. Talk

7. Not Going to Talk about

8. And not about

10. 1. Things 2 Consider Before
Approaching VCs
2. How do VCs Think & Why
Risk
Market
Team
Traction (AARRR)

11. Before Approaching VCs

12. 1.
Do you
Need to
Raise from
VCs?

13. Up to 30%!?

14. 2.
Why are
VCs doing
This?

15. 2 Make
Money

16. Don‘t need
Lots of money to
Create Great
Games
3.
Are You What
VCs are
Looking For?

17. This is where VCs Play
Source: Startup Genome Report 2012

18. 2 Types

19. Don‘t need
Lots of money to
Create Great
Games
Vision

20. Execution

21. Which is Better

23. How Do
Investors Think?

24. Taking Risks

25. Investors Hate
Big Risks

26. Mitigating
Risks

29. Hugh Market
Huge (addressable)
Market

30. Why?

32. 10% $1bn
Awesome Execution
(After 5 years)
Huge Market
$100m
Potential Annual Revenue

33. $100m
Annual Revenue
$500m
Potential Company Valuation
5x
Revenue Multiple

34. 20% $500m
VC’s Share of your Company
(After 5 years)
Potential
Company Valuation
$100m
Potential VC Return

36. 10% $1bn
Awesome Execution
(After 5 years)
Huge Market
$100m
Potential Annual Revenue

39. “It’s all About the Team”

42. Don’t Be This Guy

43. Traction

44. What is good traction

45. AARRR
AARRR
Pirate Metrics

48. Acquisition 1000 100%
Referral 70 10%(out of Active)
Activation 700 70%
Revenue 14 10%
Retention (Day 1) 140 20%

49. Avoid
Vanity Metrics

50. Referral 70
Activation 5,000,000
Revenue 14
Retention (Day 1) 140
Vanity Metrics 

51. Now What?
#2

54. Average
6 Months

55. There is Always
That 1 Guy….

56. Long Journey

63. David.fogel@wayra.org
@fogeldavid