Questions VCs Will Ask You

As someone raising a Series A, you should be prepared to answer the following questions:

2. Market and business modelWhat is the big opportunity you are addressing? What are the steps to getting there?What is your business model? How will you make money? How big of a market is your specific market really?Who is the competition? Why will you beat them?Why are you uniquely positioned to win in the market?What is the market structure and ... See more

6. End gameWhy can this be a billion dollar business?

3. ProductWhat problem are you solving?Why do users care?How is this better than what is out there? How big of a difference is this really?What are your major product milestones that are coming?What are the 2-3 key things your product lacks?What have you learned from the early version of the product?Product traction. What are the key metrics of use... See more

4. DistributionHow are you going to distribute the product? How are you going to acquire customers? Is this an SEO, SEM, viral, radio ads, direct mail, PR, other based business?Some may ask about per customer acquisition costs and ARPUWhat advantage if any do you have for distribution?How has distribution worked so far? What has worked/not worked?W... See more

5. Fundraise and financialsWhat milestone will the capital get you to?Why do you need to raise money? How much money do you really need? Why don’t you need less How much dilution will you give up? What is your pre-money target range?What will you use the capital you are raising for?What are your basic financial projections?

1. TeamWho is your team?Who are the 2-3 key hires you need to make for the company?How do you plan to scale the team in the next year?Why is your team uniquely qualified to solve this problem? What unique insight do you have?