26 questions you have to answer correctly to get funding for your startup
It’s been a crazy week. On Monday we announced that our project received funding. Member of the Croatian Angel Network – CRANE, Mihovil Barančić believes that we have what it takes to create something big and worth mentioning. But I am way ahead of myself. We’ve started to explore the possibility of getting an investment roughly a year ago. So here are some questions that we got during that time.
- Why do you need an investment?
- Why don’t you sell your house/company/whatever if you believe that much in your product?
- Do you believe in your service?
- What does your service do?
- Why is that better than company x?
It’s good that your share all this info, because otherwise you’re a bozo (tm Guy Kawasaki-Steve Jobs)
- What if some big company decides to copy your service?
- What if your competitor or newcomer decides to copy your service and offer it half the price?
- Is there any competition?
- Can you see your company becoming a 10 million dollar company?
- Why don’t you start localy first?
Why don’t you go global from the start? Since we were going global right from the start, we weren’t asked that question (but some probably will).
- Can you bootstrap?
- What experience do you have?
- How did you get your idea?
- Do you have a working prototype or a proof of concept?
- Why should I invest in you instead of hiring 1/2/3 people and outsource the whole project?
- Would you be willing to relocate to: capital city/London/Sillicon Valley?
If you make any kind of statement, be prepared for questions about backing up that statement with facts.
- Do you have an executive summary?
- Do you have a business plan?
- How are you going to get your customers?
- Who needs your service?
- Who is you target audience?
- What is your business model?
- Do you have an exit strategy?
- Are you prepared to give up 10%/20%/30% of equity?
- How much money do you need?
- Why that ammount?
I am 100% positive there were more questions, but these were the ones that first came to my mind. Good luck in finding the answers. Please, please, please help share this questions and help other startups that want to receive funding!
Author: Goran Duskic
Goran Duškić co-founded a game development team Generation Stars when he was a teenager, and he co-founded hosting and web develpoment company GEM Studio (which was sold in 2011). He co-founded tech startup WhoAPI and has 10+ experience in business development, online marketing strategy and PR.
This entry was posted on Wednesday, December 21st, 2011 at 11:43 am and is filed under News & Updates. You can follow any comments to this entry through the RSS 2.0 feed. You can leave a comment, or trackback.