Investment Focus

At VanNess Capital we look at multiple factors when determining which companies are a good fit for our portfolio. The following is a good overview that we like to look for in companies. These are Merly guidelines not a steadfast “checklist.”  We will dive into some of these after viewing pitch decks and determining if an introductory meeting is warranted.

01

Strong Team
  • Experience and Expertise: Look for founders and team members with relevant industry experience and a track record of success.
  • Complementary Skills: Ensure the team has a good mix of technical and business skills.
  • Passion and Commitment: The team should be passionate about their vision and committed to seeing it through.
  • Multiple Founder: Typically, we like teams that have 2-3 Founders.

02

Market Opportunity
  • Market Size: Assess the size of the target market and its growth potential.
  • Market Need: Ensure there is a clear and significant need for the product or service.
  • Competitive Landscape: Understand the competition and how the startup differentiates itself.

03

Innovative Product or Service
  • Unique Value Proposition: The product or service should offer something unique that sets it apart from competitors.
  • Scalability: The solution should have the potential to scale and grow with the market.
  • Customer Validation: Look for evidence of customer interest and validation, such as early adopters or pilot programs.

04

Business Model
  • Revenue Potential: Evaluate the startup’s business model and its potential to generate revenue.
  • Cost Structure: Understand the cost structure and how it impacts profitability.
  • Sustainability: Ensure the business model is sustainable in the long term.

05

Traction and Milestones
  • Progress: Look for startups that have made significant progress, such as product development, customer acquisition, or partnerships.
  • Key Metrics: Evaluate key performance indicators (KPIs) that demonstrate growth and potential.
  • Milestones: Assess the startup’s ability to achieve important milestones and goals.

06

Financial Health
  • Funding Needs: Understand the startup’s funding requirements and how the investment will be used.
  • Financial Projections: Review financial projections and ensure they are realistic and achievable.
  • Burn Rate: Assess the startup’s burn rate and how long they can sustain operations with current funding.

07

Alignment with Your Investment Thesis
  • Industry Focus: Ensure the startup aligns with your industry focus and expertise.
  • Stage of Development: Match the startup’s stage of development with your investment strategy (e.g., pre-seed, seed, Series A).
  • Impact and Values: Consider whether the startup’s mission and values align with your own.