Meeting with VCs and Angels: What they really want to know

Venture capitalists (VCs) and angel investors are always on the lookout for promising startups with high potential for growth and profitability. As a startup founder or entrepreneur, presenting your ideas and proposals to these investors is an important step in securing funding for your venture.

However, before you step into that meeting room, it’s crucial that you equip yourself with the right answers to the questions that these investors are likely to ask. In this article, we will take a closer look at the top 10 questions that VCs and angels typically ask during such meetings, and what they really want to know.

1. Who else have you spoken to?

One of the first questions that investors are likely to ask is who else you’ve spoken to about your startup idea. They want to know whether other investors or competitors are interested in your idea or if they have made any commitments. This question allows them to assess the level of competition, potential investment interest and the overall industry landscape.

2. How will you make money?

This is a critical question that every startup founder or entrepreneur needs to be prepared to answer. Investors want to know how you plan to generate revenue or profits from your startup, what your business model is, and what the revenue streams are. They want to see a clear path for sustainable growth and scalability, and how you plan to monetize your product or service.

3. How will your company grow?

Investors are looking for startups with the potential for rapid growth and scalability. They want to see how you plan to expand your product or service and increase your market share. You need to have a clear strategy for growth, including your target markets and the channels you plan to use to reach them.

4. What technologies do you use?

Investors want to know what technologies you use to create your product or service. They want to see whether you are using the latest technology trends or sticking to traditional methods. This can help them assess the potential for future competitiveness and growth.

5. How easily can you be copied?

Investors are aware of the risks involved in investing in startups, and they want to know how easily your idea can be copied or replicated by competitors. They want to see what your unique selling points are and how you differentiate yourself from your competitors. You need to be prepared to explain your competitive edge and how you plan to protect your intellectual property.

6. Can we see the demo?

Investors want to see your product or service in action. They don’t just want to hear about it; they want to see it for themselves. A demo is a great way to showcase your product or service and let investors see its potential firsthand.

7. Who are your competitors and how are you better/different?

Investors want to know who your competitors are and how you plan to differentiate yourself from them. They want to see what makes your product or service unique and why customers would choose you over your competitors. You need to be able to analyze your competition and explain why your product or service is better than theirs.

8. Who are your customers?

Investors want to know who your target customers are and whether you have a deep understanding of your market. They want to see whether there is a market for your product or service and how you plan to acquire and retain customers.

9. How will you spread the word about your product?

Investors want to see a clear marketing strategy that outlines how you plan to reach your target customers, create brand awareness, and generate sales. They want to see that you understand the importance of marketing and have a plan in place to promote your product or service.

10. What will your market penetration be?

Investors want to know what your market penetration is likely to be and whether you have a scalable business model. They want to see that you have a clear plan to expand your customer base and increase your market share over time.

In conclusion, if you want to impress VCs and angel investors, you must be well prepared and have the answers to these questions right at your fingertips. Make sure you have a well-prepared pitch deck that covers all of the important topics and a demo of your product or service to showcase its potential. With the right answers to these questions, you’ll be well on your way to securing the funding you need to take your startup to new heights.