Cube Capital
50 Questions VCs Ask Founders
VC fireside chat invitations are highly sought after among tech founders, marking
the initial step in their quest for capital after a pitch captures a VC's interest. For
every founder who secures this chance, nine face rejection. Among those
advancing, a mix of self-assurance and nervousness is common, indicative of the
high stakes at play. These chats are critical, potentially leading to either a term
sheet or a rejection. Founders must skilfully handle the VC's probing questions.
This article offers a comprehensive list of 50 questions, serving as an invaluable
tool for founders to assess their venture plans comprehensively and identify any
remaining gaps.
Company Vision and Mission 5. What is unique about your technology or
solution?
1. What is your company's core mission, and
how do you plan to achieve it? 6. How do you plan to evolve your
product/service in the next 1-3 years?
2. Can you describe the long-term vision for
your company? 7. What intellectual property do you have, and
how do you plan to protect it?
Product or Service
Market Opportunity
3. What problem does your product or service
solve? 8. How big is the market opportunity, and how
did you arrive at that figure?
4. How does your product work? Can you walk
us through the user experience? 9. Who are your target customers, and why will
they care about your product?
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10. Can you describe your market segmentation Customer and Market Validation
and go-to-market strategy?
31. How have you validated the market and
product fit?
Business Model
32. What customer feedback have you received,
11. What is your revenue model?
and how has it influenced your product
12. How do you plan to acquire customers? development?
13. What are the customer acquisition costs, and
how will these change over time? Sales and Marketing
14. What is your pricing strategy? 33. What sales channels are most effective for
you, and why?
15. How do you plan to scale the business?
34. How do you plan to grow your sales and
marketing efforts?
Traction
16. What traction have you gained so far? Technology and Development
17. Can you share some growth metrics or 35. What is your approach to product
milestones achieved to date? development?
18. How are you measuring success, and what 36. How agile is your product development
are your key performance indicators? process in responding to market changes?
Competitive Landscape Partnerships & Collaborations
19. Who are your competitors, and how do you 37. Are you looking for strategic partnerships,
differentiate from them? and if so, in what areas?
20. What is your competitive advantage, and is it 38. Have you established any partnerships, and
sustainable? how do they add value to your business?
Team Legal & Regulatory Compliance
21. Can you tell us about the founders and the 39. Are there any regulatory hurdles for your
core team? product/service?
22. What relevant experience does the team 40. How do you ensure compliance with laws
have? and regulations in your industry?
23. How do you plan to grow the team in the
next year? Impact & Corporate Social
Responsibility
Financials 41. Does your company have any social or
24. What are your current financials, including environmental impact goals?
revenue, profit, and burn rate? 42. How does your company culture reflect your
25. What are your financial projections for the values?
next three to five years?
26. How much funding are you seeking, and how
Exit Scenarios
will you use the capital? 43. Have you thought about potential exit
scenarios or acquisition targets?
27. What is your exit strategy or plans for future
funding rounds? 44. How do you plan to provide a return on
investment to your shareholders?
Challenges & Risks
28. What are the biggest challenges your
Use of Proceeds
company faces? 45. Can you break down how you will allocate
the funds you're raising?
29. How do you plan to overcome these
challenges? 46. How long will the current fundraising round
last, and what milestones do you expect to
30. What are the biggest risks to your business,
achieve with it?
and how are you mitigating them?
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Investor-Specific Questions Miscellaneous
47. What are you looking for in an investor 49. What keeps you up at night when thinking
beyond capital? about your company?
48. How do you see investors being involved in 50. How do you stay ahead of the curve with
your company? technology trends and customer demands?
Every tech founder and tech investor is attempting their personal Everest climb. Some
are getting ready at basecamp, while others are almost at the summit. Cube Capital
advises them on the critical aspects of the climb, especially when planning and
attempting mergers, acquisitions, capital raising and divestments. We also work on the
design, development, and execution of strategies for investing, growing, pivoting,
restructuring, and exiting.
Cube Capital
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