When asking venture capital investors for the most important reason why they decided to invest in a startup, all of them put the team first. Or at least they claim to do so. It comes as no surprise that APX, too, bases its investment decisions primarily on the team. The difference to lots of other investors out there is, however: we really mean it!
This becomes clear when you compare APX to VC funds that invest at seed stage or later. Their investment managers will always require you to show traction before they invest: be it the number of active users, recurring revenues, or other key metrics that are relevant measures for the success of the specific business you’re building. APX, however, invests even earlier. And we often do so even if a startup has not yet released its product, let alone generated any traction. So there’s no traction yet to analyze.
After you submitted your pitch deck at APX, we will examine your business case, your hypotheses, the market, competition, or timing. We need to understand how you have validated your assumptions and how potential customers react to your product idea. This is an integral part of our selection.
But it is the founders that are decisive. What are your individual skill sets and backgrounds? Is the team complementary? We look at how you are motivated, whether all founders are fully committed if you are able to make smart decisions together if you can prioritize well, if you understand the opportunities and risks of your business. If you act smart and fast. And whether you’re bold enough to build a great business, without losing yourself in imagery wishful thinking and deep reality distortion fields. That’s why our APX Venture Development Session focussing on pivots is the final stage of our selection process.
Through our investment and our tailormade program, we then support you to get ready for your seed round.
So the answer to your question, “are we APX ready?” is straightforward: if the idea is compelling, the timing works in the favor of your product, and you gathered a strong team – that’s the moment you should consider an APX investment. We need to see validation. We like traction, too, like every investor. But we don’t need to see traction, as long as you can convince us it will follow.
We look forward to taking a look at your case. Start the journey here.