How many startups do VCs invest in out of every 100 they meet?
For every 100 deals that a Venture Capital firm would want to evaluate for investment, they decide to meet founders of just 28.
From the 28 meetings you get with an Analyst or Associate, just 10 go up to the Partners for serious consideration.
Out of those 10, only 5 may go to the stage of deeper due diligence of the data, and finally, 1 may get a term sheet and a deal closure.
So even when you’ve got a meeting with a fund, there is just a 3.5% chance of that converting to a term sheet.
Basically, do not lose hope if you’ve done just 20 meetings and none are converting.
It takes a lot of hustle. A lot of it.
And warm intros have a 16 times higher chance of closure than cold emails.
P.S. Amazing stats I read in Sajith Pai’s summary of the book, The Unicorn’s Shadow by Ethan Mollick. Ordering right away.
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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of ’17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.
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