Beyond the Numbers: Why VC Investment Demands More Than Just ARR
While annual recurring revenue (ARR) and traction are important indicators of a startup's current health, they alone do not guarantee venture capital (VC) investment. Venture capitalists seek startups with innovation, defensibility, and efficient distribution strategies, emphasizing the importance of qualitative factors like team quality and market timing. Companies that align with societal trends and demonstrate potential for rapid scaling and market dominance are particularly attractive to VCs, regardless of their current revenue figures.