Founder Friday: The Most Important Things to a VC
There’s a 2015 blog post from Taiwan Startup Stadium titled “Pitching ain’t easy: Robert Neivert of 500 Startups on how to grab & keep your audience’s attention.” Pitching ain’t easy. Short. Simple. True.
Pitching is even more challenging if you don’t know what motivates a VC to want to invest in your startup. So, that begs the question, what is most important to VCs? Let’s take a deeper look.
- What are the founders backgrounds?
- Are the founders passionate about their vision?
- Can they elicit that same passion in others?
- Do they have the business acumen to continue to push the ball forward?
- Key management team members
- What is your business model?
- What is your MRR/ARR?
- How many users/customers do you have?
- What has your growth rate been?
- What is your churn?
Market & Fit:
- What problem is your product solving?
- Competition within the sector
- How has your beta or MVP performed?
- Barriers to Entry/Success
- How big is the market in its entirety?
- What share of the market do you realistically think your company can grab?
- What is your go-to-market strategy?
Regulatory & Legal:
- Do you require FDA approval?
- Where are you related to FDA approval?
- Do you have patentable IP?
- Have you already filed for any associated patents?
- What is your patent status?
- Do you fit their portfolio wants?
- How much capital is required?
- How do you plan on using the capital?
- Do you have the correct valuation?
- What ownership stake will they be receiving
- Number of board positions
- Do they see you bringing a minimum of 10x ROI