Venture Capital Tips
by Shoichiro Tanaka, General Partner of HITSERIES FUND
What are the most important questions to evaluate founders potential
As a venture capitalist, I prioritize evaluating the founders’ ability to develop a distinctive industry thesis grounded in sound market principles, rather than focusing on vision and mission statements at the early stage. Success in the complex business landscape demands more than just superior speed or strength; therefore, I also assess the team’s mental and emotional resilience to navigate challenges and continuously compete with rivals.
How can you effectively negotiate with entrepreneurs who are unfamiliar with the venture capital process?
Venture capital is no longer a novel industry but has evolved into a well-established one. Consequently, a lack of understanding of the venture capital process can be a significant handicap for founders. Successfully securing seed and Series A funding without navigating the nuances of venture capital customs may not translate to securing later-stage funding (Series B, C, D, E, and IPO). It’s crucial to remember that stronger competitors vying for the same funding can significantly impact your selection chances. Therefore, developing professional negotiation skills with venture capitalists is paramount for success.