Haque Formula for Funding Startups
The latest issue of Business Today has a story on Pramod Haque of Norwest Venture Partners. He has been ranked by Forbesas the No. 1 VC, ahead of Vinod Khosla. The article has a sidebar entitled “The Haque Formula” – how he decides if a company is worth funding. Key points:
– The problem being addressed must be a difficult one to solve.
– The market addressed must be large enough.
– Prospective customers must be interested in the solution.
– It must be a young idea, with few others in the space.
– There must be large entry barriers.
– The solution must have a long shelf life.
– The founders must have credibility and management experience.
– There must be a sound operational plan.
– The egos of the founders must be in control – they must be open to external inputs.