What percentage of ideas submitted to venture capitalists are rubbish?

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JASON LEMKIN

I would say for me, very few of the product ideas are rubbish.

But

95% of the investment ideas are rubbish. The distinction is important:

  • Ideas are a dime-a-dozen.
  • 2–20 other entrepreneurs and wannapreneurs already have your idea, too
  • You probably have no traction yet and no or very limited proof points
  • Your “idea”, even if great, is probably too small on its own today, too nichey, to justify an investment.

Have you asked yourself: Why would someone invest in you?

And if it’s early stage — why can I make 100x on the investment (to account for the risk)? I.e., why can you really get to $100m or more in revenues?

95% of “ideas” don’t answer these questions. The product ideas are just fine. The investment ideas are terrible.

Upgrade how you present your pitch from just a product pitch, to also, Why I Will Make $100m+ on The Investment Pitch … and your odds go way up …

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Published on March 20, 2017
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