What are some milestones that investors look for?

Tomasz Tunguz / November, 2017

Description

Tomasz Tunguz, Partner at Redpoint Ventures explains metrics of milestones at different types of startups such as software, infrastructure, consumer and more.

Video Transcript

What are some milestones that investors look for?

What are some milestones that we look for? Sometimes they are revenue based so in the software world, it’s monthly recurring revenue. At the series A, its 50 to 100K in monthly recurring revenue, and about 250K at the series B. For infrastructure companies, so we were investors in Pure Storage, that’s a flash memory company. They are not going to bring their product to market for an extended period of time, so we’re looking more for technical milestones.

Then the consumer world where you really delay monetization, you are really looking for user acquisition or user engagement milestones. At the seed stages, it’s really about seeing that the company’s product captivates a small group of people and engages them for extended periods of time. Then in the series A, we often think about how many millions of monthly active users do they have. Then in the commerce world, we invest in a lot of marketplaces: there we look for gross merchandiser value going through the platform. We are investors in BP which is a second-hand car marketplace and their GMV milestone can be much bigger because of its transactions worth $15-$20,000.

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