What do venture capital firms look for when investing in small business?
Travis Stegemoller is the General Counsel of Gener8tor, and Vice President of the Venture Club of Indiana. He says that when searching for investment opportunities, team, talent and the size of a market are important factors.
Stegemoller says the Venture Club of Indiana looks for investment opportunities in companies with scalable models that are in billion-dollar sectors. These include companies that disrupt markets that are traditionally non-digital.
Stegemoller says that when the Venture Club of Indiana is presented with investment opportunities, it takes into consideration the recommendations of member firms who have already invested. The club also looks at companies that have a revenue below a certain threshold.
Stegemoller wants entrepreneurs asking themselves “What does success in Indiana mean?” Investors are looking for a return on investment and are looking at the Hoosier State as a potential prospect. This includes startups focusing on agriculture and sports technologies.
Stegemoller believes that entrepreneurs must have the tenacity to scale up their business quickly when venture capital dollars begin to flow.