I am not an authority or a VC. So far, I have invested in 9 companies globally- all in healthcare or education. One thing that I have come across in almost every transaction is when seed funded companies go for Series A- Investor raise red-flags about
1. Recurring revenue
One such situation came in today when I was asked How do you anticipate growth of 15%-20% YOY when in a force of 200 employees you have only 5 sales guys and 2 marketing people. What are you relying on? Most start-ups find it hard to answer such a question.
When you cannot rely on sales and marketing to be your driver of growth, you rely on your customer to be your driver of growth. Hence when the service and the product keep evolving imparting better and sustained value- one ne…