What questions should I ask a VC firm?
The 12 Questions All Founders Should Ask VCs
- ↗️ Do you lead?
- ➗ What \% of the fund is this investment?
- 🪑 Do you typically take board seats?
- 🏦 How much is reserved for “primary” vs.
- 🎲 How often do they “follow-on?”
- 🥞 Have you led follow-on investments?
- 📰 What are the reporting requirements going forward?
What questions do VCs ask founders?
Anticipate these questions:
- Who are the founders and key team members?
- What relevant domain experience does the team have?
- What key additions to the team are needed in the short term?
- Why is the team uniquely capable to execute the company’s business plan?
- How many employees does the company have?
What makes a good VC investment?
VCs look for a competitive advantage in the market. They want their portfolio companies to be able to generate sales and profits before competitors enter the market and reduce profitability. The fewer direct competitors operating in the space, the better.
What should I look for when hiring a VC?
Forewarned is Forearmed! F. Value Added. Don’t just look to a VC for their money. In most cases they will want a seat on your board, if not two. What you want from this is relevant experience and the ability to contribute to the business beyond their financial investment. Don’t be shy.
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 vcvc investors look for in a candidate?
VC investors are ruled by their brains and their guts, but gut instincts — whether acknowledged or not — are strongly colored by individual experiences. Get your would-be investors talking frankly about their own experiences and challenges with your specific space, whether it’s e-commerce or cloud computing.
How do I start working with a VC firm?
D. Process. If you start working with a VC firm, you are setting out on a long term relationship and it is important to get off on the right foot. There is a lot of detail to be covered in the investment process and they will explain it to you. Raise the subject and get them to explain it to you.