Venture capitalists evaluate early-stage companies by looking for 'customer love,' which indicates product-market fit and customer enthusiasm, measured through organic acquisition rates and referral word-of-mouth, with a preference for companies that go deep rather than broad in their customer engagement.
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What do VCs mean by customer love?Added:
One of the things we look for from very early on is signals of what we call customer love. It in another way you could say it's have you found product market fit. What we like to see beyond product market fit just in terms of usage or engagement or retention is really signs of customer enthusiasm.
Whether that shows up as the percentage of organic acquisitions or the rate of referral word of mouth. With companies early on we'd rather they go deep than broad.
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