As a seed-stage investor, First Round Capital typically funds powerpoints. Not only are the majority of our investments pre-revenue, but most of the time we are investing in pre-launch companies. While these companies might have an alpha/beta version of their site, it's usually early enough that we can’t base our investment decision off of any market traction. Instead, we typically make our investment decisions based on three key areas: the size of the market, the strength of the team, and the product vision. This is often made even more difficult by the fact that we know that many of the businesses we fund end up with (one or more) pivots -- since their business plan is always wrong.
To read the full, original article click on this link: Pre-Launch Business Plans Are Always Wrong
Author: Josh Kopelman