27 June 2010
Three Key Questions for VC Funding
06/30/10 17:28 Filed in: Misc
Want to pitch your company idea for funding to VCs? Well. you need to be able to answer the following questions:
1) Team - Who is on your team? Do they have a previous successful exit as an entrepreneur? Do they have domain expertise that is valuable for this startup?
2) Market - Do you have a serviceable market that is small enough to be ignored by the big entrenched players, but fast growing enough to lead to a total market that can support a $200-300 million enterprise value for the company?
3) Differentiation - Do you have a differentiation against the competition? Does the customer care about the differentiation and will they be willing to buy your product because of it? How defensible is the differentiation?
Answer these well...and best of luck in your funding endeavors.
1) Team - Who is on your team? Do they have a previous successful exit as an entrepreneur? Do they have domain expertise that is valuable for this startup?
2) Market - Do you have a serviceable market that is small enough to be ignored by the big entrenched players, but fast growing enough to lead to a total market that can support a $200-300 million enterprise value for the company?
3) Differentiation - Do you have a differentiation against the competition? Does the customer care about the differentiation and will they be willing to buy your product because of it? How defensible is the differentiation?
Answer these well...and best of luck in your funding endeavors.
