Things Venture Capitalist Want To Know

How to bag the funding from Venture Capitalists

Venture Capitalists (VC’s) often ask some questions to get a detailed perspective of 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

Team

3) Team

a. This is the ethos part of the pitch 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) BusinessBusiness

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?

  1. Sales process
  2. Customer acquisition cost
  3. Profitability

f. Barriers to entry/exit

5) Ask

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?

Leave a Reply

Your email address will not be published. Required fields are marked *