In a podcast from Harvard Business Review, Scott Kupor, managing partner at Andreessen Horowitz, says there’s a lot about navigating the venture capital world that entrepreneurs don’t understand.
Kupor outlines what he and his partners look for in founding teams and business ideas, explaining how start-ups work with venture capitalists to become successful companies. Here’s a hint: The number one thing is to show a clear vision for the future of the company.
“If you think about this, if you’re starting a company, you’ve got to be able to convince people to quit their jobs and come work for you,” Kupor writes. “You got to be able to convince customers to be early adopters of a product that probably is barely functional in some cases, or certainly missing what the long-term functionality will be.”
Kupor goes on to say that part of his job is to also poke holes in a new company’s plans, to test the limits of the entrepreneur’s thinking on some things and figure out what assumptions are being made and how sturdy they are. Read the full transcript of the podcast.