VC READINESS: A lot of startups contact us and ask for help to get adequate funding. They often refer to information on the internet or financing rounds from other startups which have let to the impression that finding an investor, e. g. venture capital company is an easy task.
Unfortunately, it is first of all not that simple, secondly, many startups are simply not yet ready for a financing round. What does that mean? Why are they not “VC ready”?
Presuming that your business requires venture capital funding, you want to validate the following key assumptions:
- Is your product solving a real problem of a real customer?
- Who is paying whom for what, when, and how?
- Is the market big enough so that your company can earn investors a high return for their venture investment?
- Who are your direct and indirect competitors?
- Do you have a good pitch deck and a solid financial plan, which reflect the above mentioned items?
Venture capital investors will challenge you on various topics. They need to understand your vision, KPIs around early traction, your financial model including unit economics, your product plan and roadmap, sales and marketing, and your team setup.
The best advise here is to simply make your “homework” and answer all the questions above before contacting potential investors. The better you’re prepared, the higher the chances to get a funding.
In case you need help or have further questions, please don’t hesitate to contact us.