Table of Contents
- 1 What questions should I ask a startup CEO?
- 2 What questions you should ask a potential venture capital investor?
- 3 What metrics do VCs care about?
- 4 How often should a VC talk to the CEO of a startup?
- 5 Do you have thoughtful and reasonable answers to VC questions?
- 6 What do venture capitalists look for in an investor pitch?
What questions should I ask a startup CEO?
4 Questions You Must Ask in Your Startup Interview
- What Does Success Look Like for the Company?
- What is the Biggest Risk to the Company?
- What’s the Current Runway, and What Are Future Funding Plans?
- What is Current Growth Like?
What questions you should ask a potential venture capital investor?
10 Questions You Should Ask Potential Investors
- What is the size of your current fund?
- How much dry powder remains in the fund?
- What is the investment period for the fund?
- Do you have discretion over investments?
- Are you a financial or strategic investor?
- What is your cost of capital?
What metrics do VC look at?
Nine Venture Capital Metrics to Determine Fund Health and Performance
- Multiple on Invested Capital (MOIC)
- Gross Total Value to Paid-In Capital (Gross TVPI)
- Net Total Value to Paid-In Capital (Net TVPI)
- Residual Value per Paid-In Capital (RVPI)
- Distributions per Paid-In Capital (DPI)
What metrics do VCs care about?
Company Metrics Early-Stage VCs Care About
- Monthly recurring revenue. Monthly recurring revenue is just what it sounds like: the amount of money that customers have committed to spend each month on your product or service.
- Weekly revenue growth.
- Company Metrics: Customer acquisition cost.
- Customer lifetime value.
- Churn rate.
How often should a VC talk to the CEO of a startup?
In my experience, communication between an investor and a CEO should increase when times get tough. Ideally, the VC should be talking to the CEO multiple times a week and focusing on taking decisive action. Under no circumstances should the VC step back and let someone else (such as someone junior) handle the situation.
What do venture capitalists look for in a startup founder?
Venture capitalists look for founders who truly understand the financials and key metrics of their business. You need to show that you have a handle on all of those and are able to articulate them coherently. “Know exactly what you want to spend your money on.
Do you have thoughtful and reasonable answers to VC questions?
The failure to have thoughtful and reasonable answers to VC questions will decrease the likelihood of the company getting funded. The following is a list of key questions the entrepreneur should answer in the pitch or anticipate getting asked:
What do venture capitalists look for in an investor pitch?
At the beginning of an investor pitch, the venture capitalists will want a clear and concise overview of what the company does, why it should be interesting, and why it would eventually lead to a large exit. So, expect that you will need to cover the following: What does the company do? What is unique about the company?