Questions to ask VCs #21

Welcome to the Thunder Founder Newsletter Issue #21!

What questions are you asking VCs when you meet with them? It's important to get to know the VC just as much as you want them to get to know you.

The last few minutes of an investment pitch is a golden moment for founders. It is when you can ask the VC direct questions relating to the fund and the market that can uncover how serious they are in being an investor and what they are looking for in your type of company. It is important to remember that an intro call is not a one-way street. You have every right to ask tough questions to the VC to understand what they are looking for.

Did you know that VCs will meet with startups even when they have no more capital to deploy? As a founder, you don't want to waste your precious time with meetings that won't lead to investments. There are a number of reasons why VCs conduct these meetings. If you're lucky, it is to look for potential startups for their next fund. However, it is usually to conduct market research and keep a tab on what is being innovated or to see what competitors to current portfolio companies are doing. However, it is only through good questioning that you can discover more about what they are at and looking for in the meeting.

To uncover more about their fund, what they think about your market, and what types of terms, try the following questions:

• What fund are you investing out of?
• How many deals do you have left in the fund?
• Who else have you seen in this space? What did you like or not like about them?
• What do you find most risky/difficult about starting in this space?
• Does the fund have experience investing in my sector or have a thesis on the market and where it is heading?
• Would you buy this product? If not, could you tell us why?
• Why do you think my business will fail?
• What comes along with the money?
• What type of partners and partner relationships will be coming alongside the investment?

While not every VC will be equally open to answering these questions, you will be surprised at the number of funds that are more than happy to provide a few minutes of insight. Take advantage of those last few minutes - it is your golden moment.

If you're ready to raise capital, let us know and upgrade to Premium to unlock your targeted investor list of who will have a higher probability of investing. All premium clients receive a complementary consulting session with Jason Kirby, Managing Partner at Thunder. Upgrade Now

What the Experts Have to Say

Don’t be Afraid to Ask the VC Tough Questions

It can feel intimidating to ask questions to the VC since you don't want to scare them off. However, it is critical to ask the important questions. Read More

The Winning Psychology of Top Founders in Fundraising Meetings

NFX, a top-tier VC, explains how asking the tough questions is the mindset you need to be a winning founder. Read More

Here’s What Every Founder Should Be Asking Their VCs Right Now

Fundraising is more than just money, it is about finding a VC that will give you time and insights. Knowing how to ask what their add-on value is, is very important.  Read More

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Written by Jason Kirby - https://www.linkedin.com/in/jasonrkirby
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