Predictable things that VCs will want to know if you ask for funding :

“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.

 

peter-thiel

 

 

What venture capitalists look for :

 

1) Macro

Macro
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

 

 

3) Team

team

 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

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

                                                                                              iii. Profitability

                                                                             f. Barriers to entry/exit

 

 

5) The Ask

 

The Ask

a. How much do you need and what will you use it for?

b. What’s your burn?

c. Valuation

 

 

 

 

 

 

6) Funding History/Syndication

 

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)

 

 

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