Jeff Clavier SoftTech VC

What Jeff Clavier, SoftTech VC says about topics vital to entrepreneurs

Jeff Clavier Posts – Titles

Jeff Clavier  Posts  – Titles  (3 posts)


Jeff Clavier: What I Look at When Investing

Jeff Clavier:  My Product Considerations

Jeff Clavier:  My Market Considerations

Jeff Clavier: My Market Considerations

Jeff Clavier angel investor, Founder and Managing Partner, SoftTech VC

“I look at the three typical factors [when investing]:  the team, the product, and the market.[]”

Here are his market considerations.  

“Is it feasible in, say, three, five, or seven years to build a company that’s going to go to $50 million or $100 million in revenue and not be the only player in the market? If you own 50% of the market and you’re a $100 million company, then that’s interesting.

So, I figure out the market opportunity, is it big enough?

[] [Clavier’s ultimate question]: how can you build a team that really has a scalable product into an interesting market? []

Do I see this company being able to produce revenues of $500 million using the sort of trajectory of customer acquisition, traction, monetization, retention and so forth, based on what they do? [] If the answer is yes, and they are not the only player in the market [] you see at least a $1 billion or $2 billion market.”  Jeff Clavier, Seed Capital From Angel Investors: Jeff Clavier, Founder And Managing Partner, SoftTech VC; July-Aug. 2010; http://www.sramanamitra.com/2010/07/28/seed-capital-from-angel-investors-jeff-clavier-founder-and-managing-partner-softtech-vc-part-1/

Jeff Clavier: My Product Considerations

Jeff Clavier angel investor, Founder and Managing Partner, SoftTech VC

UPDATE Jeff Clavier:  My Product Considerations

During the Aug. 26, 2015  Bloomberg West TV show,  Jeff Clavier indicated that he now invests in business-to-business type companies (i.e., the enterprise space).  This accompanying post re: the consumer space was kept herein because his comments are still valuable and relevant for consumer-oriented companies.

 

“I look at the three typical factors [when investing]:  the team, the product, and the market.[]”

Here are his product considerations.  

“Because I invest mostly in the consumer space, I will ask, Do they understand consumer mechanics, customer acquisition, and customer retention. Do they think properly about the key metrics of the business and how to optimize them? Do they understand monetization? How do you make money [and how scalable is it?]

Then I look at the product, the concept, is it differentiated? Have I seen ten or twenty versions of this thing in the past? Is it unique? How defensible is it? How replicable is it? [] How can they grow this thing? []

[Clavier’s ultimate question]: how can you build a team that really has a scalable product into an interesting market?” Jeff Clavier, Seed Capital From Angel Investors: Jeff Clavier, Founder And Managing Partner, SoftTech VC; July-Aug. 2010; http://www.sramanamitra.com/2010/07/28/seed-capital-from-angel-investors-jeff-clavier-founder-and-managing-partner-softtech-vc-part-1/

Jeff Clavier: What I Look at When Investing

Jeff Clavier angel investor, Founder and Managing Partner, SoftTech VC

“I look at the three typical factors [when investing]:  the team, the product, and the market.

[] I’m going to really focus on the team. What’s their background? What have they done? What’s the dynamic between the different members, are they complementary?

[] an early-stage team is always about two or three people, and they have a lot of potential [] but they don’t have everything. [] I’m always looking at the core team as the initial asset I invest in.

[] I don’t want to have to change the founding team []. It’s either I buy them as they are or I pass on them as they are.

[] Can I see them being successful as they are without fundamental changes to the team? Otherwise, it is just too much work.

[] I want people working extremely hard while being dedicated to and passionate about their business and who have empathy. You have to walk on water to be a successful entrepreneur, so empathy is very important.

Sometimes you just feel that people are natural-born entrepreneurs because you see they have a clear vision, understand the steps, and know how to go from where they are to the next steps. [] If they can convince you as an investor, they will be able to convince employees [] to join them or future customers to use their products.” Jeff Clavier, Seed Capital From Angel Investors: Jeff Clavier, Founder And Managing Partner, SoftTech VC; July-Aug. 2010; http://www.sramanamitra.com/2010/07/28/seed-capital-from-angel-investors-jeff-clavier-founder-and-managing-partner-softtech-vc-part-1/