Reverse Criteria for Deal Flow

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investors often have criteria for the startups they are looking for.

Some investors also have reverse criteria for deal flow to point out startups they will not fund.

Here's a sample list of reverse criteria:

Solo founders

Many successful startups have at least two founders.

Lack of a technical founder on the team.

Most successful startups have a technical lead in place.

No track record.

Some investors look for a founder who has had an exit previously and has started more than one business.

Lack of emotional intelligence.

While many investors look for intelligence, the true test is emotional intelligence.

This comes out in how well they work with others.

Small target market.

Some startups are making a go of it in a small market.

This may make it difficult to scale later.

No clear exit strategy.

It's often the case that the startup has no exit strategy in place.

Investors look for a clear path to an exit.

Consider creating a list of reverse criteria for your startup investing, as it will save you time in reviewing deal flow.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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