5 Things Every VC Wants to Know About Your Business

When you are on the hunt for investments from venture capitalists or angel investors, you may face some pretty intense presentations and meetings. The secret to being prepared for those encounters with potential investors is to realize that they all pretty much want to know the same 5 things. If you are prepared to give that information, you can kick your stress level down a notch and get to work at finding the right VC or angel investor.

1. Market Size

Venture capitalists and other investors are typically more interested in products or services that can be sold to a wide audience rather than a small, niche market. They will also want to know how many competitors you have in your market space.

2. What Your Business Brings That No Other Can

Investors need a reason to back your business over any other business trying to sell the same product or service. Provide them with details on what you have or feature that your competitors can’t. Being unique in your space in some meaningful way is essential to capturing market share and drawing in more business funding.

3. Your Business Strategy

While the concept is key, an actual, fleshed-out plan of how to get your product or service into the hands of customers is just as important. Venture capitalists want to know how you do that and how you plan to expand the process.

4. Your Plans for Capital

If your business is so wonderful, why do you need outside money? That is a question that all venture capital and angel investors will be wondering. Show them exactly what the cash infusion will be used for and how that plan will lead to greater profitability and returns for them.

5. Why You Are the One to Lead the Way

As the leader of the company, investors will need to feel that you personally are someone they can trust and someone who has the charisma, smarts and perseverance to make their investment worthwhile. Be prepared to provide personal background information that will show them why you are qualified to make your business successful.

When you have all these facts and figure ready to present at the drop of a hat, you will have confidence that will be sure to attract the venture capital you seek.


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