Paige Finn DohertyFounding Partner, Behind Genius · Founding Partner at Behind Genius Ventures

what factors do investors consider when examining deals?

10 Dec 2023 · 1 min

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In this brief segment from a YouTube video, the speaker shares insights learned from "Fund 1" about the factors investors examine when reviewing a founder’s deal history. Investors look for familiar co‑investors they recognize, which serves as a credibility signal, but they also expect a portion of the portfolio to include deals outside that known network. The speaker uses a Venn‑diagram metaphor to illustrate the ideal balance: not a complete overlap with familiar investors (which offers no new learning) nor a completely disjoint set, but a thoughtful mix of recognizable and off‑the‑beaten‑track investments that together form a compelling, diversified portfolio.

Chapters

What I learned in Fund 1 is that when they're looking at the deals that you've done, some of the things they'll think about are like, who are other co-investors that we recognize? And then are there enough deals that are outside of that network? If you think of it as like a Venn diagram, you don't wanna have like a complete overlap of things they know because then they're not learning anything new. But you want to have a certain Venn diagram that allows them in that centerpiece to have a really thoughtful portfolio that's made up of things that might be familiar or recognizable, and then some that might be a little bit off the beaten track.