As if having an awesome product isn’t hard enough: A study published in the peer-reviewed academic journal Venture Capital has found that a startup’s name can seriously affect how a company is perceived by investors.
Names are are easily pronounced, such as Uber and Lyft, are preferred by both early and late stage investors. They tend to be offered more money, whether its through crowd funders, angel investors, VCs or IPO investors.
Uniqueness is also virtue, but only with early-stage investors. The study found that since very little is known about a company in the early stages, unique names give the impression there is something special about the company.
Difficult names “evoke cues of unfamiliarity and create a perception of high novelty, which is valued by these pre-venture stage investors,” according to the study.
This is an interesting article and deserves a read from every startup founder and domainer.
Here is the link to the article
Names are are easily pronounced, such as Uber and Lyft, are preferred by both early and late stage investors. They tend to be offered more money, whether its through crowd funders, angel investors, VCs or IPO investors.
Uniqueness is also virtue, but only with early-stage investors. The study found that since very little is known about a company in the early stages, unique names give the impression there is something special about the company.
Difficult names “evoke cues of unfamiliarity and create a perception of high novelty, which is valued by these pre-venture stage investors,” according to the study.
This is an interesting article and deserves a read from every startup founder and domainer.
Here is the link to the article
