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More in the 50 Questions Series50 questions: What are the alternatives to venture capital? | 50 questions: How much money should I raise? | How does the structure of the VC industry impact investment strategy? |
50 questions: How does a VC evaluate a company’s product?
Together with Nic Brisbourne of The Equity Kicker / DFJ Esprit, I am writing a series of 50 questions you should ask when raising venture capital. We expect the series to run for a year, after which we will collate the answers into a book. We view this as a collaboration, so please comment to help make this series even more useful. This is question # 18
One of the big trends in startup financing is that value is being created earlier in the life of a company and the VCs who want to invest before the value inflexion point increasingly need to evaluate companies that have yet to generate meaningful revenues, and therefore before the strength of the product has been validated by customers to any great extent.
Nic runs through the different ways in which a VC will consider your product. Check out the post, and consider how well your product would do.
Hungry for more? Go to the 50 questions homepage for more insights into venture capital.