Inside the Deal: How We Vet Startups at CrowdVentures
Trust is the currency of our platform. We know that when you invest through CrowdVentures, you aren't just betting on a startup; you are betting on our judgment. That is a responsibility we don't take lightly.
We reject 97% of the companies that apply. It’s not because they are bad businesses, but because they aren't venture-backable or crowd-ready. Here is exactly how our filter works.
Layer 1: The Hygiene Check (Pass/Fail)
Before we even look at the pitch deck, we look at the paperwork. Is the entity registered? are the founders full-time? Are there any pending litigations?
Red Flag: "Side-hustle" founders. If you aren't all-in, we can't ask our investors to be.
Layer 2: The Business Model Stress Test
This is where we crunch the numbers. We look at Unit Economics, CAC (Cost of Acquisition), LTV (Lifetime Value), and Market Size.
We aren't looking for profitability today, but we need to see a path to profitability. We ask: "If this company gets ₹5 Crores tomorrow, do they know exactly how to turn it into ₹50 Crores?"
Layer 3: The "Founder-Market Fit"
This is the intangible part. Why *this* founder? Why *this* problem? Why *now*? We look for obsession. We look for unique insights that only they have.
"We invest in lines, not dots. We look at the founder's trajectory over time, not just where they are today."
When you see a deal on CrowdVentures, it has survived the gauntlet. It is a deal we are proud to put our name behind.