"What VCs Look For" at the 25th Angel Forum

by Warren Frey | Business

Andrew Lugsdin of BDC Venture Capital was front and centre at the 25th Angel Forum today at the SFU downtown campus in Vancouver, starting the day with a fact-packed session on “What VCs look For.”

Lugsdin started the session by pointing that there’s never one thing VCs search for when looking to back a company. But there are several criteria that will help fledgling companies to differentiate themselves.

An ideal candidate, Lugsdin said, is a private technology-based company with strong management, a strong competitive advantage, and placement in a large market with high growth potential. It goes without saying that the company should have a sound business model and reasonable valuation, but they should also have a comprehensive business plan. Companies should know how they’ll go to market, how they’ll maintain their position, and all of those factors have to be fleshed out and validated before approaching a VC. Protected intellectual property is another good element, whether its a patent or other defensible matter that preserves your competitive advantage.

Financing isn’t a short-term relationship, Lugsdin said, and so trust and integrity over a long relationship are very important.

And finally, a company should have a credible route to a liquidity event. VCs should know, or at least have a very good idea, as to when their investment is going to pay off.

The Angel Forum
Vancouver, British Columbia, Canada

Founded in 1997, the Angel Forum - Vancouver semi-annually introduces emerging companies to private equity investors. As one of the oldest & largest angel groups in Canada with 90+ investors, its primary objective is to facilitate investment in emerging companies. Presenting companies have raised over $24 million directly through the Forum. Since 1998, Investor Ready workshops for entrepreneurs... more

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Warren Frey

Warren Frey

Warren Frey is a writer, editor, blogger and podcaster based out of Vancouver, BC. After working for six years in the Canadian broadcasting industry, he switched to print and has since covered varied assignments from plumbing conferences to star-studded film galas. But he’s never lost his love for the internet and interactive media, from his teens when he dived into the WELL on his “Woz”... more

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