David Brim on business, marketing & life.

Inside the Mind of an Investor: The Three Asses Rule

By: David Brim March 1, 2013

Many of the business owners, and entrepreneurs I speak with have a desire to raise capital from angel investors, or venture capitalists. Though this is one way to grow a business (see my post on entrepreneur runways) this route is not the only route. I personally have never taken investment funding to grow any of my ventures. Nevertheless, learning about how top investors think can be very helpful to any business owner. Why do they choose to invest in one deal versus another? Though there are many answers to this question and each investor may differ in their answer, Jeff Clavier, managing partner of SoftTech VC, has an easy to remember approach that I find valuable.

The 3 Asses Rule…

inside-the-mind-of-vc-Jeff-Clavier

I’ve also added an audio interview of Jeff speaking about this topic.

Jeff Clavier’s 3 Asses Rule is Very Solid…

Smart Ass Team
Kick Ass Product
Big Ass Market

It makes a lot of sense.

Another investor I spoke with years ago told me that they have a similar way they assess investment opportunities.

The Track – Rider – Pony approach.

Track – Market
Rider – Entrepreneur
Pony – Product

This philosophy works symbiotically with the 3 Asses Rule. A great entrepreneur (Rider) will build a “Kick Ass Team” that will uncover opportunities in “A Big Ass Market” (Track) and be able to win the race for success in that market with a “Kick Ass Product” (Pony).

I hope that you found these insights to be helpful!

About the author

David Brim

David Brim is an Orlando based entrepreneur and marketing strategist turned investor. He is the founding partner and Chief Strategy Officer of Orlando Opportunity Fund, focused on advancing Central Florida communities through investments in early stage companies and commercial real estate. He is also a co-founder of Bright Impact, a consulting, software and fund administration company focused on Opportunity Zones. David has founded many early stage ventures across a variety of industries including software, marketing, ecommerce, and real estate. He has been featured in one of the most popular entrepreneurship textbooks “Successfully Launching New Ventures”, authored a best selling book on digital marketing, and worked with over 1,000 second stage businesses. Read full bio.

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