When approaching VCs for funding, entrepreneurs need to be prepared to answer any question. The failure to give reasonable and thoughtful answers to VC questions decreases the likelihood of the startup getting funds. The following are four questions you should expect from venture capitalists.
Where will your company be in few years?
To know your company vision is very important. The VCs want to know your goals and how you would reach them. They would also be interested in knowing the strategic plans you have put in place to grow.
How is your fundraising process?
Here, investors want to know how fast they have to move in as investors. They would also be interested in knowing how important they are to your startup.
Tell us about your team?
Here, VCs want to hear terms like “From a long time” and “Committed’. Without a dedicated team, you cannot win over the VCs. Since VCs do not run a company, it is important for them to know you can run it.
How is your competition?
Here, be honest because most VCs do their homework. Name all your competitors and convinc the VCs that your startup has a good team and something unique to offer.