I promised you specifics, so here we go!
In my last article, I shared three identifiers you can use to quickly identify killer startup investment opportunities.
Furthermore, I promised to show you specific startups that feature these identifiers — startups that are currently raising funds from investors like you.
Ready to see ‘em?
A Quick Reminder
To kick things off, let’s quickly recap the basic idea here:
The No. 1 reason a startup fails is because it runs out of money. So as investors, we should avoid the companies that are most likely to run out of money!
Instead, we should focus on companies that are:
- Capital efficient.
- Run by multiple founders.
- Backed by professional investors.
And now, let’s look at a startup that possesses each of these characteristics.
A Capital-Efficient Business
If a company is capital efficient, that means it can achieve significant growth with little investment.
A classic example is a software company. After all, writing software requires no inventory, no manufacturing, no shipping costs, etc.
One such startup is SPILL, a social-media platform.
As more and more consumers leave legacy social platforms like X (formerly Twitter), SPILL offers a new alternative — a place to connect and collaborate.
SPILL, which was named Apple’s App of the Day in February 2024, is led by industry veterans with experience from X, Meta, and Google.
You can learn more here »
Two Founders Are Better Than One
Startups with multiple founders tend to be more successful.
In fact, one study showed that companies founded by two or more people grew nearly four times faster than companies with solo founders.
So the next characteristic to look for is a company that’s run by more than one founder.
Furthermore, we’d look for a balanced founding team — for example, a team that has a mix of business experience and technology expertise.
That’s exactly the case with a startup called Avadain.
Avadain is a materials-science company focused on a “super material” called graphene.
Simply put, the company created a superior graphene material that enables the creation of everything from more efficient batteries and safer medical devices, to faster planes and more powerful computers.
Avadain was started by Phil Van Wormer and Brad Larschan.
Phil provides the tech expertise. He has a Bachelor’s degree in Chemical Engineering, and has forty years of experience creating new technology products.
Brad provides the business expertise. He holds a Master’s degree and a Law degree, and was previously a CEO and an international lawyer.
You can learn more about Avadain here »
Follow the Pros
The third characteristic to look for is a startup that’s raised funds from a professional investor.
In this industry, the pros are called venture capitalists, or VCs for short.
The VC’s job is to raise a big pool of capital — $50 million, $500 million, $1 billion — and then, over time, invest that capital into a portfolio of high-potential startups.
If a startup raises part of an early funding round from a VC, it’s 63% more likely to raise additional funding later. In other words, it’s less likely to run out of capital.
One example of a startup that’s raised funds from VCs — and is currently raising funds from investors like you — is called Namecoach.
Namecoach has built an AI-powered platform that delivers accurate audio-name pronunciations. Essentially, it offers name pronunciation tools integrated into workflows like email signatures, CRM systems, and learning management systems.
Mispronouncing a name may seem trivial. But in a world where teams are increasingly international, and names come from a wide array of languages and cultures, Namecoach is addressing a growing global need.
And from a business perspective, its product becomes “sticky” when integrated into systems like Salesforce, Zoom and Google Workspace — in other words, once it’s integrated, it’s likely to remain there, making money, for a long period of time.
Perhaps that explains why Namecoach is already backed by VCs like Founders Fund (the fund of Peter Thiel, an early investor in Facebook, and the founder of PayPal, Palantir, etc.), Impact America Fund, 640 Oxford, and Authentic Ventures. These VCs previously invested in major success stories like Spotify, OpenAI, and Airbnb.
Namecoach is already generating four million dollars in annual revenue from forty customers including Procter & Gamble, the WNBA, and the American Medical Association.
You can learn more about Namecoach here »
A Great Place to Start Your Search
Keep in mind, I’m not recommending that you run out and invest in these companies.
Despite the positive characteristics they display, these are still early-stage ventures. So you’ll need to do your own research before making an investment decision (or join one of our premium services where we do the research for you!).
But as you learn about what to look for in your early-stage investments, reviewing these deals is a great place to start.
Happy investing.
Please note: Crowdability has no relationship with any of the startups we write about. We're an independent provider of education and research on startups and alternative investments.
Best Regards,
Editor
Crowdability.com
