SeedInvest's Ryan Feit on teaming w/ Wolf3D b/c mkt potential; co's like FB getting into social VR

TL;DR

Startup funding requires a developed MVP, a full-time team, appropriate level of traction, and successful business and legal due diligence.

Transcript

wolf 3d like any company applied at CBS com / apply so same sort of standard application for all companies the first check is we are looking to fund businesses and not ideas so it's critical for us that there is an MVP or prototype that is ready developed so with full free 3ds case they had a prototype that they were using and I think at the time t... Read More

Key Insights

• 😤 Startups need to demonstrate a developed MVP or prototype and have a full-time team to be eligible for funding.
• 🧑‍🏭 Traction and valuation are crucial factors in evaluating a startup's potential.
• 🧑‍⚕️ Business and legal due diligence is necessary to identify potential fraud and assess the startup's financial health.
• 🛀 The presence of a prototype reduces risk and shows market demand.
• 🔬 Market potential and interest are important considerations for investing in startups.
• 🎁 Early-stage companies often carry more risk but can also present significant market opportunities.
• 🥹 VR technology, such as social VR, holds market potential and is being increasingly pursued by companies like Facebook.

Questions & Answers

Q: What are the key requirements for a startup to be eligible for funding?

Startups must have an MVP or prototype, a full-time team, appropriate traction, and valuation in line with their industry.

Q: How important is conducting business and legal due diligence in the funding process?

Business and legal due diligence is crucial to ensure there are no fraudulent activities and to evaluate the startup's potential for success.

Q: How does the presence of a prototype impact the funding potential for a startup?

Having a prototype demonstrates that there is a demand for the product or service. It also reduces the risk associated with the development process.

Q: What factors determine the appropriate level of traction for a startup?

The appropriate level of traction depends on the industry and market the startup operates in. It should show promising signs of growth and customer interest.

Summary & Key Takeaways

• Startups need to have a minimum viable product (MVP) or prototype and a full-time team to be eligible for funding.

• The startup should also show appropriate traction and valuation relative to their industry.

• Conducting business and legal due diligence is crucial to ensure no fraudulent activities and to verify the viability of the startup.