Summary

Kirsten Connell, an investor at Octopus Ventures, shares insights on pre-seed investing and what investors look for in startups. She discusses the importance of traction and metrics at the seed stage, but notes that pre-seed investments are less impacted by this shift. She emphasizes the need for exceptional founders who have identified a real need, can build an MVP, and have a clear plan to take their product or service to market. Kirsten also discusses the challenges and opportunities in B2C startups, the importance of founder-market fit, and the impact of competition on investment decisions.

Keywords

pre-seed investing, traction, metrics, exceptional founders, MVP, go-to-market, B2C startups, founder-market fit, competition

Takeaways

• Investors are more focused on traction and metrics at the seed stage, but pre-seed investments are less impacted by this shift.
• Exceptional founders who have identified a real need, can build an MVP, and have a clear plan to take their product or service to market are highly sought after.
• In B2C startups, it's important to have a strong value proposition and a clear understanding of the market and route to market.
• Founder-market fit is crucial, whether the founder has first-hand experience in the industry or is passionate about solving a problem.
• Competition is a factor to consider, but it's not the sole reason to bow out of investing. Other factors such as market size, product roadmap, and business model should also be taken into account.
• When reaching out to investors, a warm introduction from another founder can be more effective than a cold outreach. Concise and visually appealing pitch decks that highlight the founder's standout qualities and the size of the opportunity are more likely to capture investors' attention.

Titles

The Importance of Founder-Market Fit

The Shift in Expectations for Seed Rounds

Sound Bites

"You're still looking for an exceptional founder who's identified a real need, can build an MVP, and has got line of sight of how they're going to take that product or service to market."

"Founders who truly understand their route to market and have a deep understanding of their early adopters are more likely to succeed."

"In B2C startups, building a strong brand and ensuring product retention are key challenges."

Chapters

00:00 Introduction to Kirsten Connell

03:24 What Investors Look for in Pre-Seed Startups

08:52 Challenges and Opportunities in B2C Startups

12:38 The Importance of Founder-Market Fit

23:37 Tips for Reaching Out to Investors and Creating Pitch Decks

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