Statistics show that every year venture capitalists invest extremely large sums in what they perceive are promising businesses. To convince these investors that your startup is worthy of funding, it is essential that you can stand out from amidst a crowd of persistent and inventive entrepreneurs. To accomplish this, you have to prepare yourself with a compelling pitch. Here are some questions that venture capitalists commonly ask for which you should be ready with answers.
What Unique Solution to a Compelling Problem Can You Offer to Consumers?
The investors you approach look for products or services that offer effective solutions to problems that consumers encounter. They will want to know why consumers will find your product or service essential and what sets it apart from the offerings of your competitors. Prepare yourself with an explanation of what will be so attractive to consumers that they will switch brands and be loyal to yours.
Why Are You the Best Person to Realize This Vision?
Venture capitalists will not only take a close look at your ideas, but they will also carefully scrutinize you and your qualifications to run your business. While preparing yourself for your pitch, be ready to emphasize your strength, determination, tenacity, resolve, and clarity of vision. At the same time, make it clear that you are open to any advice that your investors might offer.
Is Your Timing Appropriate?
Potential investors will question whether it is the best time to back you and your company. Be prepared to demonstrate how you plan to capture a substantial market share through an analysis of your target market and financial projections that show the profitability of your products or services.
Have You Put Together a Strong Backup Team?
Besides highlighting your qualifications as a leader, be prepared to answer questions about the capabilities, qualifications, and balance of the team that is backing you up. If you are still assembling your team, focus on sharing a detailed hiring plan.
For more advice on preparing yourself for a pitch to venture capitalists, contact Scarlan Capital Group.