You may have heard that the most important criteria of investors is the founder and team. They bet on the jockey, not on the horse. Startup success is more about execution, less about great new products and untapped markets. What happens when investors like your venture but are leery about investing in YOU? I’ve been there. …
Startup Score Card: Free Download for Founders, Mentors and Investors
Having scored hundreds of startup opportunities as an angel investor, VC, and mentor, I thought I would share my scorecard template. It’s how I determine the merits of a new business opportunity. I score startups on five dimensions: Product – how good/unique is the product or service? Market – are they targeting the right market segment? Team …
10 Dumb Things Entrepreneurs Say to Investors
1. We can share our deck and financials under NDA. (investors don’t sign NDA’s, asking them to do so shows you have no clue what you’re doing) 2. We don’t have any competitors. (yes you do) 3. We are raising money to build and test our MVP. (investors invest in product and traction, not in …
Raise or Sell? That is the Ultimate Question for Entrepreneurs Running Growth Businesses
Just about every week I get a call from an entrepreneur trying to decide whether to raise another round of capital for his or her company, or sell the company and get out while the going is good. It’s usually an emotionally-charged discussion. There are all kinds of personal considerations that go into that decision, …
Top 10 Toughest Questions Asked of Startup Founders (and how to answer them): PART 1
Of all the roles a startup founder must assume, one of the most important is that of A.I.C – Answerer In Chief. Founders will field a never-ending barrage of questions from smart investors, as well as from prospective customers, suppliers, partners and key employees. How founders answer these questions will determine whether they will get …
Top 10 Toughest Questions Asked of Startup Founders (and how to answer them): PART 2
In Part 1 of this piece, we addressed the first five toughest questions asked of startup founders. In this piece, we will drill down on the second five toughest questions. With a little preparation and forethought, you can avoid getting stumped and communicate complete confidence in yourself and your startup. 6. What are you going to do if X …
Tough Questions Smart Startup Founders Should Ask Prospective Investors
In my last post, I covered the tough questions smart investors should ask startup founders. In this post, we turn the tables and cover the tough questions smart start founders should ask prospective investors. It’s just as important for entrepreneurs to do their due diligence on prospective investors, as it is for investors to do their due …
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