ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Questions you need to be able to answer before you apply for Venture capital

Updated on May 29, 2013

What is your current development stage of your business venture? Choose only one.

Idea - Conceptual product without revenues/customers/employees
Startup - Prototype Product with preliminary sales
Growth - New Product - Minimum revenues
Expansion - Established Product with Customers and close to Breakeven
Mature - Established - Operating at a profit

What is the value add of your product or service? Please compare to direct and indirect competitors in your industry.

Similar product to others
Product offers new features not available elsewhere
Radically new product and service with overwhelming advantages
Product with 20%-50% cost/benefit advantage
Product with greater than 50% cost/benefit advantage

How developed is your relationship with customers? Pick the best one.

None yet
Some identified
Signed letters of intent
Current test customers
Paying customers
Established repeat customers

What are your "trailing revenues"? I.e. sales for the past 12 (twelve) months?

Less than $100,000
Between $100,000 to $1,000,000
Over 1,000,000
Over $5,000,000

What are your expected revenues four years from now?

Less than $1M per year
Over $1 Million, less than $10M dollars per year
Over $10 Million, less than $100M dollars per year
Over $100 Million, less than $500M dollars per year
Over $500M

In four years, what is your expected market share in your industry?

Do not know
Less than 20%
Between 20%-40%
Between 40%-70%
Over 70%
VC Quiz - Questions 7-13 of 20

How large is your target market and industry? Note that you should be very specific (selling peanuts at the circus puts you in a very small market, not in the multibillion dollar food or entertainment industry). Base your answers on the above two questions, or revise your above answers.

Less than $10 Million dollars per year
Over $10 Million, less than $100M dollars per year
Over $100 Million, less than $500M dollars per year
Over $500 Million, less than $1B dollars per year
Over $1B

What is the current state of competition in your industry?

Unidentified competitors
Many small competitors
Several large competitors dominate industry
One or Two large competitors dominate industry

What is your relative size versus competitors in industry?

Similar size / advantages to others
One of the First Movers into the industry
Best network and alliances with exclusive contracts
First Place: Currently larger by 10-40% % over next competitor
First Place: Currently the largest by 50% over next competitor

What intellectual property does your venture currently have?

Trademarks and copyrights
Process patents
Patent pending technology
Patented technology (granted)
Patented technology implemented in product
Patented technology - with royalty stream

Is your key executive team (CEO/CFO/Marketing/CIO/Ops) on board?

Founders only - top spots pending funding
CEO and others currently on a part-time basis
CEO and others full-time commitment
CEO and others have worked on venture for over one year full-time

Has top management had previous successes?

With previous employers
Own small business success
IPO or Company sold for > $10M and <$100M
Company sold for >$100M
IPO taken to market >$100M

How much money has management committed to the venture so far? This is purely capital, without any "in-kind" or labor costs.

Less than $10,000
Between $10,000 to $100,000
Between $100,000 to $500,000
Over $500,000

What are the most likely "exit scenarios" for your investors, I.e. how will they get their money back in five years?

Have not thought about it
Interest payment
Sale to management
Sale to strategic buyers

What detail exists for your financial statements?

None written yet
Basic income statement only
Detailed income statement, balance sheet and cash flows
Complete set of statements reviewed by accountant
Complete set of statements audited by accountant

How developed is your marketing plan?

None written yet
Promotion, pricing and distribution addressed
The above plus branding and image
Test Marketed branding and marketing

How much market research have you done for new or follow-on products?

Industry literature
Focus Groups
Market tests with selected customers
Functioning product at multiple customers

How does your business plan address inherent risks?

Best case scenario is realistic
Worst case scenarios are outlined
Multiple scenarios are considered and planned
Measures to counter risk are identified
Measure to counter risk are implemented

How detailed is your business plan document?

None written yet
Executive summary of about four pages
Business plan written by CEO of about 20 pages
Total business and operational plan, ready to implement
Professionally written and edited plan

How much venture capital are you seeking right now?

Less than $200,000
Between $200,000 to $1,000,000
Between $1,000,000 to $5,000,000
Over $5,000,000


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)