What are questions every VC should ask a startup?


1

Believe the question explains itself, but if you have questions, just let me know.

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asked Oct 13 '10 at 09:25
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Blunders .
899 points
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2 Answers


2

Some repurposing of content from Guy Kawasaki's book "Reality Check":

Realness: How big an impact is your company going to have on the world? Entrepreneurs who make meaning and change the world usually also make money.

Traction: Are you generating revenue currently? Do you have customer references? What proofpoints do you have that this can be a real business?

Cleanliness: Are there any lawsuits or disgruntled equity owners or other messes that have to be cleaned up?

Forthrightness: What are the messes and what's your plan to fix the problems?

Enemies: Who are your competitors? (It's not good to say 'none'. Can mean there's no market for your product or service.) Why do you have an advantage?

answered Oct 13 '10 at 11:53
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Chris
4,214 points
  • **@Chris:** My favorite is, what’s the barrier to entry for competition? Or what Warren Buffett likes to call "moats" instead of barriers. I like to call it a legal monopoly... :-) – Blunders . 14 years ago
  • Yep, that's an excellent one. There are a lot more but to be honest I was enthralled watching the miner rescue so did a short answer! – Chris 14 years ago

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What problem do you solve?

How do you make money?

How do you get started?

The rest is a judgement call: are the founders trustworthy, believable and driven.

answered Oct 13 '10 at 09:35
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Alain Raynaud
10,927 points
  • **@Alain_Raynaud:** Thanks for the edit, and supplying an answer. If no one else post an answer in the next 24-hours, I'll give your reply as the answer. Cheers! – Blunders . 14 years ago

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