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40 Questions Venture Capitalists and Angel Investors Will Ask Startups

Here is a list of questions that angels and VC’s will ask startups when deciding whether to invest or not.  If you have answers to these questions up your sleeve, you should be pretty well prepared.

The Idea:

  • What does your business do?
  • What problem does it solve?

Traction:

  • What progress / milestones have you achieved so far (e.g. number of registrations, downloads, sales, pre-orders, web visits, etc)?
  • Do you have a prototype or demo version?
  • Do you have and patents or IP protection (either approved or pending)?
  • How quickly are you growing?
  • Can this traction be ramped up?

The Market & Competition:

  • Who are your target customers / users?
  • How big is the market?
  • How quickly is your target market growing?
  • What are the current market trends?
  • Who are your competitors?
  • What are your USP’s? i.e. what makes your solution better than the competition?
  • What are the barriers to entry for you to enter the market?

Marketing:

  • What is your marketing strategy?
  • What is your PR strategy?
  • What is your social media strategy?
  • What is the cost per customer acquisition?
  • How long do you expect your customers to stay with you?

The Founders & Team:

  • Who is in your management team?
  • Where are they based?
  • What industry experience do they have
  • Have they ever started a company before?
  • Have they successfully exited before?
  • Do you have any advisors?
  • Which gaps do you need to plug in your team?
  • How do you plan to scale your team?

The Financials:

  • What are your historical turnover and profit (if any)?
  • What are your projected turnover and profit?
  • What assumptions are these projections based on?
  • How much has already been invested in the company?
  • What is your monthly burn rate?

The Deal:

  • How much money do you need?
  • What is the investment going to be spent on?
  • What are you offering in return for the investment?

The Exit:

  • What is your exit strategy?
  • What do you see this happening?
  • Have there been any recent acquisitions in your sector?
  • Who are the potential acquirers?
  • How will the exit valuation be determined?

Have I missed any out?  What other questions do you think an angel or VC might ask?

Angel Investment Network’s Weekly Funding Roundup

Here’s a roundup of some of the recent seed-stage and angel deals from around the world:

  • SpaceCurve, a new platform designed to meet the growing volume, velocity & variety demands of big data, lands $10M Series B financing
  • Need, a startup billed as a cross between a retailer and a men’s lifestyle magazine, has closed a seed funding round
  • Mobento, an online educational video hub dedicated to making educational video more accessible to all, lands £1.1M seed funding
  • Honest Buildings, a web platform to connect professionals in the real estate construction & design space, raises $5.5M Series A funding
  • Attendware, which offers software for event check-in and auto-generated name tag printing, has raised $1M million Series A funding
  • Snapchat, a photo messaging app that allows users to send images which ‘self-destruct’ in 10 seconds, raises $60M venture capital funding
  • Password management business my1login has now taken its seed investment total to £1 million ahead of a planned Series A round in 2014
  • Nextt, a private social network that focuses on connecting friends around real-world events and experiences, raises $700,000 seed funding
  • Artisan Mobile, creator of the industry’s first Mobile Experience Management platform, has raised $5.5M Series A financing
  • Invi, a mobile messaging app based in Israel, which has pulled in a $3 million seed round
  • BuildZoom, the service designed to connect homeowners with licensed contractors, has closed on $1.4M in seed funding
  • 7write, which is aiming to be the world’s number one self-publishing platform, raises $250,000 angel funding
  • invino, the first private sale shopping community for wine lovers, has raised over $3 million in venture capital
  • Wifinity, which provides wireless-based energy management, security and smart-grid solutions to enterprises, has closed angel funding
  • Audio mobile advertising platform Appington lands $1.2 million seed funding from a range of angel investors
  • The Bouqs, the Farm-to-Home flower delivery service, has raised $1.1 million in seed funding
  • Watchwith, the leading sync-to-broadcast content management platform and syndication network, completes $5 million venture financing
  • Restaurant reservation service Resmio has received a six-figure seed funding round from a German publishing holding group
  • Lightpoint Medical Ltd, a developer of innovative imaging technologies for cancer surgery, has secured £175,000 seed funding
  • BabyList, the online universal baby registry which lets couples request unconventional items, has raised $620,000 seed funding
  • DataTorrent, a Hadoop-based, real-time data streaming platform, has raised $8 million funding led by August Capital
  • Storefront, the online marketplace for short-term retail spaces, has secured $1.6M seed funding

To get regular updates, come follow us on Twitter: http://twitter.com/angel__network or register for our blog at http://www.angelinvestmentnetwork.net/wp-login.php?action=register.

Have you managed to raise capital for your company?  We always love to hear from entrepreneurs who manage to get funded.

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

A list of the most important factors in SEO ranking

A study from Searchmetrics has revealed just how important social media signals are to a strong SEO ranking, with well-positioned URLs almost always having a high number of Likes, shares, tweets and +1s.

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Video – The Role of Angel Investing in South Africa

Infographic – How Brands Can Choose The Right Social Media Platforms For Their Goals