As a subset of private equity firms, VC firms -- and more specifically, their partners -- look for startups with high growth potential.
General partners (GP’s) of venture capital funds come from an investment background. It's their job to locate high-growth potential startups while they negotiate with and agree to terms with startup founders. General partners have a fiduciary responsibility to their fund’s limited partners.
As individual or institutional investors, limited partners (LPs) invest their capital but don’t get involved in the day-to-day operations of the venture fund. The capital flowing into VC funds often originates from financial services firms, insurance companies, pension funds, and college endowments.
VC partners look for startups that can grow to 100+ million dollar valuations. To achieve and exceed this milestone, VC general partners know their portfolio companies need a great product and a cost-effective way to get their target market to purchase that product; typically, they need a very solid value proposition. All of these building blocks roll up in the firm’s go-to-market strategy.
From a tactical perspective, venture capital firms advise their portfolio companies to create a go-to-market strategy that includes buyer personas, jobs to be done, a defined sales process, a demand generation plan, content strategy, key performance indicators (KPIs) to measure progress, and a customer success framework.
However, creating an effective go-to-market strategy can be extraordinarily time-consuming and expensive.
And that’s the reason why we created Go-to-Market Strategy Blueprints so that you can get instant access to affordable Go-to-Market Strategy Blueprints for specific industries and business models.
