Shark Tank’s Rashaun Williams reveals what venture capitalists really look for

Rashaun Williams joined Shark Tank on March 21, 2025, bringing direct venture capital experience from managing a $1.5 billion tech fund. In an Inc. Magazine interview, when asked what he and other venture capitalists look for before investing, Williams stated:

“Growth and engagement are a big part of it. How many customers per month? How much are you growing that customer base? Then, here’s another one that folks don’t think about: market size.”

He continued:

“How many potential users and customers are in this universe, and if this company got 2 percent of them, does that equate to a revenue number that gets me to the billion-dollar valuation I need in order to make the returns I’m trying to get?

Williams added:

So I’m underwriting it based on how big the market size is, what percentage of that market this company can get, and how many customers it needs to have—at what price—in order to get there.”

The former Deutsche Bank executive manages a range of investments from $50,000 to $250,000 in early-stage companies.

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Shark Tank investor shares three funding stages before venture capital

Williams's investment criteria demands broad market access to balance standard portfolio risks. His strategy avoids highly specific market segments and instead targets mass-market opportunities. His funding decisions rely on businesses showing clear paths to mass-market scaling.

Williams focuses on companies that target large customer bases with broad market appeal. He also shared an example:

“One example is LimeBike, now Lime. One of the fastest-growing startups in the history of Silicon Valley. Zero to $150 million in revenue in, like, 18 months. And what they did right was they built the infrastructure.“

The Shark Tank guest investor continued:

“Instead of just jumping on the scooter wave and finding scooters and buying them from other people and then just wringing them out, they locked up manufacturing all around Asia…They outperformed their competitors because they did the hard work in the beginning, where most people figure out the hard work at the end.”

When it comes to market competition, Williams avoids direct competition with major technology companies like Amazon, Apple, Google, and Facebook. Based on current market conditions, Williams states that companies seeking $10 million while offering 20% equity face significant challenges at $50 million valuations.

In the same interview, Williams also talked about three essential stages of funding an entrepreneur should seek. The initial stage demands founders to use their own money, showing personal commitment to the business concept. Williams stressed this step during his Inc. Magazine discussion as fundamental proof of the founder's belief in their business model.

The second phase brings in funding from close connections who deeply understand the founder's abilities and work ethic. These supporters invest based on their direct knowledge of the founder's capabilities and market understanding.

The third stage introduces angel investors who provide strategic resources and capital for initial market testing. This progression helps companies build solid operational data and market validation.

The Shark Tank guest investor points out that each funding round serves as a crucial stepping stone, giving companies the foundation they need before approaching venture capital firms. His approach demands clear evidence of market response and growth potential through these preliminary stages.

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Rashaun’s background

Rashaun Williams leads Value Investment Group as a family office investor while serving as a general partner in the MVP All-Star Fund. The Shark Tank guest investor’s career started at major financial institutions including Goldman Sachs, Wachovia Securities, and Deutsche Bank.

In 2007, he established Dixsville Partners, focusing on infrastructure development and mineral companies in West Africa.

As co-founder of Queensbridge Venture Partners, he managed early investments in multiple tech companies. Williams created the Kemet Institute in 2001, providing financial literacy education to underserved communities. His 2023 venture, Antimatter Business Partners, teaches athletes and entertainers about private equity family office operations.

A Morehouse College graduate with summa cum laude honors, the Shark Tank guest investor maintains a position on Fisk University's Board of Trustees since 2015.

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For more updates on Rashaun Williams, fans can follow the Shark Tank guest investor on Instagram @rashaun_williams.