Some VCs Prefer Working With First-Time Founders🚀

Investors generally hold a bias towards funding founders with a proven track

This makes sense -- after all, VCs are in the "pattern recognition business."

But if you don't have a track record, there's no "pattern" to speak of.

However, multiple studies show no difference in the long-term success rates of
first-timers and experienced founders. (Entrepreneur Magazine)

And, some VCs like TMV co-founder Soraya Darabi, actually prefer to invest in
first-time founders.

Here's why:

1️⃣ First-timers have fresh, un-biased perspectives - they attack markets where
others fear to tread


2️⃣ Unproven startups have valuations that are often more attractive

In other words, investors can buy into startups with great potential at a lower
risk-adjusted price.

They see your unproven status as an opportunity to improve their ROI.

That means you can use your unproven status as an advantage.

New funds and funds that focus on seed and pre-seed are often more willing to
take a chance on a first-time founder.

Here's a list of 20 such funds to get your search started 👇

What are your experiences as a first-timer trying to get funded?

Let me know in the comments👇💬

#venturecapital #founders #startups

Source: Techcrunch

Posted by Nathan Beckord on LinkedIn