Looking at doing your first round of startup funding? Whether you’re pitching a VC, an Angel investor or friends, here are 20 critical questions you need to answer:
- Why do you need an investment?
- Why don’t you sell your house/company/whatever if you believe that much in your product?
- What does your service do?
- Why is that better than company x?
- What if some big company decides to copy your service?
- What if your competitor or newcomer decides to copy your service and offer it half the price?
- Is there any competition?
- Can you see your company becoming a 10 million dollar company?
- Why don’t you start locally first?
- Can you bootstrap?
- What experience do you have?
- How did you get your idea?
- Do you have a working prototype or a proof of concept?
- Why should I invest in you instead of hiring 1/2/3 people and outsource the whole project?
- Would you be willing to relocate to: capital city/London/Sillicon Valley?
- Do you have an executive summary?
- Do you have a business plan?
- How are you going to get your customers?
- Who needs your service?
- Who is you target audience?
Bonus Questions:
- What is your business model?
- Do you have an exit strategy?
- Are you prepared to give up 10%/20%/30% of equity?
- How much money do you need?
- Why that amount?
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