“How to make sure that you bag the funding from Venture Capitalists”
Venture Capitalists (VC’s) often ask some questions to get a detailed perspective about your business idea before investment.
Read on more to find out about the same and increase your chances of bagging a successful investment by Peter Thiel.
What venture capitalists look for :
a. Are you a company or just a product/feature?
b. Your vision for the company
2) Your product(s)
a. What it is
b. What problem it solves
c. Why it is superior
d. Why it is not likely to be displaced for some time
a. This is the ethos part of the presentation – why are you the right people for the task and why should the VC trust you?
b. Are you missing anyone?
c. How are you recruiting/convince the 20th employee to join?
d. What’s your philosophy on compensation?
4) The Business
a. Market size, specifically the “addressable” market
b. How much of the market are you are going to capture and how
c. Competitive analysis/advantages
d. Business model
e. How will you generate revenue?
i. Sales process
ii. Customer acquisition cost
f. Barriers to entry/exit
5) The Ask
a. How much do you need and what will you use it for?
b. What’s your burn?
6) Funding History/Syndication
a. Who else are you talking to? (This is the pathos bit)
b. Why do you want to work with this VC?
c. What do you want from the VC besides money?
(Credits – Peter Thiel)