Great article from PitchBook on why domain expertise amongst VCs matters. TL;DR -- in verticals like healthcare, having investors with high amount of domain expertise can result in up to 40% higher odds of achieving an IPO, 20% higher chance of being acquired and 30% higher chance of an overall successful exit. Importantly, the marginal value of having investors with domain expertise varies by sector and stage, and is not uniform, so your mileage may vary, and generalist investors still have a very important role to play in the venture ecosystem. https://lnkd.in/dXpi8gzm Curious to hear from founders: Do you have examples of seeing specialist investors be helpful in unique ways that you can share? Or alternatively, do you have an experience with a generalist investor who has been more helpful than the specialists?
Ji Kim
1mo
Danish- This is super informative, thanks for sharing this! Check this out Jordan Brown Jonathan Richina, MD
Raised our first checks from specialist investors (one of them being Ariel Ganz) and that has been one of the best decisions of the year. It boils down to three key things - they can fill in the gaps re: your industry. This directly reduces the uncertainty which is a big benefit for early stage founders - they have existing networks you can tap into. I am not talking about just for sales; having someone who knows who to talk to in product discovery phases goes a long way - they understand the problem and the approach intrinsically better vs generalist VCs. It helps as you always have someone to bounce ideas off.