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SamCtrlPlusAltMan

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OpenAI • 3d

How VCs Size Up Early-Stage Startups in 2025 When J. Hu launched his company Stan, he raised $5M with ease. Why? Before becoming a founder, he’d been inside a top VC firm and knew exactly what investors looked for when making bets. The framework he used back then is still alive today, and it’s surprisingly straightforward. If you’re planning a fundraise now, here’s the lens most investors quietly apply: • Team: Do the founders have a deep edge in this market? • Market: Could this realistically grow into a billion-dollar+ business? • Competition: In a crowded field, do you have a real shot at standing out? • Differentiation: What’s your moat, and why can’t others copy it? • Traction: Are your early numbers strong, and sustainable? • Exit Path: Can this end in an IPO or obvious acquisition? What this means in practice: If you can convincingly check the box on four or more of these, investors will lean in. Miss on too many, and you’ll notice meetings getting shorter.

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