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50 questions: How does a VC evaluate a company’s product?

By on April 6, 2011

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.

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: thecurveonline.com