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May 17, 2021

What do VCs Invest In?

Fundraising /

1 min read  What do VCs Invest In? What do VCs Invest In? I’m often asked what venture capital looks for. When looking to invest, VCs look for emerging tech markets with strong growth projections. These sectors include blockchain, AI, Data Analytics, and other strong growth areas. They do this partly because there’s usually a strong deal flow and it’s easy to explain to limited partners. VCs also look for platform-based businesses, rather than solo products. They look for the following: Recurring revenue, Virality factors, Network effect components, Very large markets, Strong teams, and a scalable business model. Also, traction in your business and exits of other companies in the sector drive interest as well. Are You Venture Fundable? If you want to raise venture capital funding, then check these points to see if you are venture fundable: Do you have the following: Recurring revenue – Do you have recurring revenue in your model? Platform-based approach – Are you taking a platform-based approach to the product/service delivery, or do you sell one-off products? Data-centric – Are you capturing key data elements that improve your process and product? Strong Team – Do you have a strong team? Does each member bring expertise about their field to your business? Fast Growth (>50% YoY) – Are you growing at least 50% YoY? Large Target Market – Are you targeting a market over $1B? Read more from TEN Capital: https://staging.startupfundingespresso.com/education/ Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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Blockchain Technology: Cryptocurrency

Investing, Other /

1 min read Cryptocurrency in the Fintech Space. Fintech is a giant industry that spans lots of different segments. When you say FinTech, you’re talking about insurance tech, Paymentech, banking tech, lending tech, and data. However, you are also talking about cryptocurrency companies such as Coinbase or Circle. What is Cryptocurrency? A cryptocurrency is a form of currency used for digital transactions. Transactions using cryptocurrency are managed and recorded by a noncentralized technology known as the blockchain. Cryptocurrency and blockchain are not new. In fact, they consist of some of the easiest classes in today’s computer sciences. But while crypto has been around for a long time, it has just begun to make its way into the eye of the general public. Investors Using Bitcoin Bitcoin, a commonly known cryptocurrency, has started to become a legitimate store of value for institutional investors. This move to cryptocurrency by institutional investors is likely due to the degree to which people are worried about large government deficits potentially depreciating the value of the dollar. Using Bitcoin in particular as a store of value acts as a hedge against inflation. Bitcoin is even now being used as an actual transactional currency. This can add real value to cross-border transactions, especially where there are frictions between changing currencies. Resistance to Blockchain Technology Blockchain technology certainly has proven merits. However, there are a lot of regulatory conversations and discussions around the tokenization of some of the companies implementing this technology. As there always is when it comes to changing age-old practices, there is resistance to the widespread implementation of blockchain technology to enhance the use of cryptocurrency in the everyday marketplace. Read more in the TEN Capital eGuide: https://staging.startupfundingespresso.com/fintech-problem/ Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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