The Onion was the inspiration for Vai's logo:
Investing in Startups is like “peeling the onion”: each milestone achieved removes a layer of risk. By addressing risks at each stage, Startups offer a clearer, more compelling proposition to investors.
Why use the onion 🧅 analogy, and what does it have to do with the Startup world, investments, and Vai?
It's not about a vegetable, but about understanding the layers of risk inherent in all-stage ventures.
A Startup at its earliest stage is exposed to numerous risks—many things can go wrong (for example: the Startup may discover that the problem they're solving isn't as pressing as initially thought, leading to a lack of interest from potential customers, or a key member leaves or underperforms, so it can severely hinder progress). These risks can be compared to the layers of an onion.
At every stage of a Startup's development, you peel away certain layers of risk by achieving milestones and raising capital to address the next set of risks. You can’t peel the inner layers without first peeling the outer ones. At each stage, investors expect some risks to have already been mitigated, while others remain to be tackled.
For investors, this means that at each funding stage, specific risks should have been addressed, while others remain to be tackled. Investors expect Startups to mitigate certain risks as they progress, making it essential for founders to understand their current stage and the risks they still face.
Vai’s profile creation process is designed to help Startups showcase their progress, highlight the risks they’ve managed to mitigate, and present the milestones for which they’re seeking funding. By choosing their current fundraising stage, Startups receive tailored guidance, and Vai calculates a “Profile Strength” to reflect their specific position. This enables Startups to present themselves transparently, giving investors a clear view of their journey and the investment opportunities that lie ahead.
Discover → the inherent risks at every Seed Stage.