question made of wood in 3D (sunset landscape)

Questions any venture capitalist will / should ask about your startup

Or better yet, those are the questions you need to ask yourself at the beginning of your startup. It is very important to answer them in writing otherwise you’ll live with the false impression that you know the answers. I’ve done this mistake. So here they are:

MARKET

  • What is the market your company will compete in? 
  • How big is it? 
  • How well do you know it? 
  • Where will revenues come from? 
  • How much are customers spending in that space already or how much are they wasting?

SOLUTION

  • What is your proposed solution? 
  • Why is it an order of magnitude better than anything else out there? 
  • Why is now the right time for this solution to exist?

TEAM

  • Why are you the right team to solve this particular problem? 
  • What is your unfair advantage? 
  • How do you grow your team and maintain quality? 
  • How well do you understand your strengths and weaknesses as a team? What are your biggest weaknesses/gaps and how you plan to address them?

PROBLEM or OPPORTUNITY (some might say)

  • What is the problem in your market that no one is solving? 
  • How do you know this is a real problem? 
  • If a solution is developed, why will potential customers care? 
  • Will they pay for it?

COMPETITIVE LANDSCAPE

  • How are customers currently spending money in the space? 
  • What are their options when they want to solve this particular problem? How well do you know your competitors? 
  • How much attention do you pay to them?

FUNDRAISING

  • Why are you raising money? Why specifically from us? Why are you raising this specific amount? 
  • What are the milestones you plan to achieve between this round of financing and the next? 
  • What if things don’t go as planned?

Also, have a plan prepared because this is the only language understood by most of potential investors. No matter you have the knowledge or not to prepare such plan or how inaccurate it is (putting all your effort into it, of course), you need to have it. A man without a plan is not a man, right?

Article inspired from quotidian.co ; Photosource: dreamstime.com ; Photo edited: Adrian Costea

Adrian Costea