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Highlights

 

Welcome to another episode of Category Visionaries — Funding the Future. In today’s episode, we’re speaking with Susan Liu, Partner at Uncork Capital, a seed-stage venture capital firm investing out of a $200 Million fund.

Here are the most interesting points from our conversation:

  • Shift to Seed-Stage Investing: Susan transitioned from later-stage investing at Scale Venture Partners to focusing on seed-stage at Uncork Capital, driven by her passion for working with founders at the earliest stages of their journey.
  • State of Enterprise Software: The current enterprise software market is challenging, with traditional SaaS seeing budget constraints. However, AI-driven solutions are gaining traction, often backed by separate AI budgets within enterprises.
  • AI Investment Strategy: While there’s a surge in AI startups, Susan emphasizes the importance of founder-market fit and differentiation, as many companies are tackling similar problems in the AI space.
  • Evaluating Early-Stage Startups: Susan looks for a strong founding team with market experience, a large addressable market, and a compelling product wedge when evaluating seed-stage opportunities.
  • Traits of Successful Founders: Founders with deep industry experience, grit, and the ability to learn quickly tend to have a higher success rate, particularly in B2B markets.
  • Advice for Series A: For seed-stage founders preparing for Series A, Susan advises demonstrating strong revenue growth and capital efficiency, as these are key factors that attract investors in the current market.

 

Actionable
Takeaways

Craft a Compelling Narrative:

When pitching, focus on telling a clear, concise story that highlights your team’s strengths, market opportunity, and product differentiation. Practice and refine your delivery to demonstrate your ability to sell.

Prove Your Market Fit:

For early-stage companies, especially in vertical software, showing a credible path to market expansion is crucial. Ensure your pitch convinces VCs of the broader potential beyond your initial niche.

Leverage Industry Experience:

If you’re coming from the industry you’re trying to disrupt, leverage your network and insights to quickly gain traction. This can significantly improve your chances of success.

Focus on Efficiency:

As you prepare for Series A, ensure you can show not just growth but efficient growth. Investors are increasingly looking for startups that can scale without excessive burn.

Embrace Customer Feedback Early:

Engage with potential customers early to validate your product. This helps refine your product wedge and increases your chances of securing early customers, which is crucial for B2B startups.

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