What are the major criteria that the VC’s would be looking into before investing or rather what interests them?
As a startup entrepreneur it is highly imperative to know what type of questions or what would the VC team be asking you. If you present them with facts and figures they would be probably interested in your project.
So what are they interested in?
If you had a little guide you could probably be better prepared. Lets try and ponder into the minds of the VC’s.
The first and foremost important question that would come hurling at you would be;
1. How is your product different from others in the market or what particular pain point are you going address with your unique product? – Define the real market problem that you have identified and how your product would solve the particular issue.
2. Once you have conveyed your idea to the VC team wouldn’t it be nice if you could show them a prototype on how your product worked. Show them the core features and how it works. This would definitely give you an edge and catch their attention.
3. The next step would be to look at the user base that you have got who are using the product. It would ideal if you could show the user data and also show them the number of users who are returning to use your product. Any kind of web tracking tool would help gather the data.
4. Now comes the important part, how do you plan to attach a revenue model to your product. This is one of the major points that you would need to convey to the VC team as this can make or break the whole idea.
5.Now it is time to have a look at the team – Are you guys experienced enough. A profile about you and also the development team would be ideal
6. What is the amount of money that you are looking for?
All of the above said expected the unexpected. Have a great attitude and give your best shot, success is yours.