What are questions every VC should ask a startup?
Believe the question explains itself, but if you have questions, just let me know.
Venture Capital Investment Investors
2 Answers
Some repurposing of content from Guy Kawasaki's book "Reality Check":
Realness: How big an impact is your company going to have on the world? Entrepreneurs who make meaning and change the world usually also make money.
Traction: Are you generating revenue currently? Do you have customer references? What proofpoints do you have that this can be a real business?
Cleanliness: Are there any lawsuits or disgruntled equity owners or other messes that have to be cleaned up?
Forthrightness: What are the messes and what's your plan to fix the problems?
Enemies: Who are your competitors? (It's not good to say 'none'. Can mean there's no market for your product or service.) Why do you have an advantage?
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**@Chris:** My favorite is, what’s the barrier to entry for competition? Or what Warren Buffett likes to call "moats" instead of barriers. I like to call it a legal monopoly... :-) – Blunders . 14 years ago
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Yep, that's an excellent one. There are a lot more but to be honest I was enthralled watching the miner rescue so did a short answer! – Chris 14 years ago
What problem do you solve?
How do you make money?
How do you get started?
The rest is a judgement call: are the founders trustworthy, believable and driven.
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**@Alain_Raynaud:** Thanks for the edit, and supplying an answer. If no one else post an answer in the next 24-hours, I'll give your reply as the answer. Cheers! – Blunders . 14 years ago
