Welcome back! This week we have the 2nd set of questions detailed below. These will let you show the Investor how you intend to operate your business, in what markets, what milestones you have achieved and are aiming for, and show that the business is performing well.
Section 4 - Events and Milestones
Keep Angels and potential investors informed of the progress you are making.
Events are often recurring items, like quarterly meetings and annual reports.
Milestones - one-time events - they are not recurring items. For example, the commercial launch of your business is a Milestone.
There are some standard Milestones that a Startup company might expect to achieve on their way to success e.g. Dates for when development was completed, your first user, your first paying user, when was revenue received, when did you break even on operational costs, when did you break even on all ongoing costs?
Record any of these that you have already achieved as completed and estimate completion dates for the others.
You can also detail significant recurring events that you might want potential investors to consider: Annual reports for example.
Section 5 - Business Essentials - what makes your company attractive to investors
- How would you describe the market in which your Startup is, or will be, operating?
- Is there a document or report outlining any relevant statistics that you have about the market in which your startup will be operating?
- Do you have any direct competition to your business?
Give a few brief details if you have them.
- What about indirect competition?
Again, brief details only.
- What type of client is your startup aiming to do business with?
Businesses, Private Individuals, Retail
- Can you provide some detail about the type of clients you are expecting to sell to?
- What features and measures do you have in place or planned to gain traction in the marketplace your venture is targeting?
- Who are your main suppliers?
- What are the risks associated with your choice of suppliers? Do you have plans for using alternative suppliers if necessary?
- What is your Exit Strategy?
- What is the problem you are addressing, your solution and the benefit of that solution?
For example, for VenCat it could be "Angels must screen huge amounts of inconsistent data in order to select companies. Standardisation and automation will simplify the process. Transparency, Data Quality, Speed".
- Do you have a detailed document describing the Problem, Solution, and Benefits for your venture?
Visit the blog next Thursday for part 3!
Part 2 of 3.... the last set of questions will be released next week. Get answering the questions above in the meantime OR if you can't wait to get your Pitch together, signup to VenCat for free to answer the questions and build your pitch. Subscription fees are due when your pitch is complete and you are ready to present it to investors.