Answer :
VC investors will be interested in understanding the market potential, competitive landscape, your unique value proposition, team dynamics, risks, customer acquisition and retention strategies, and financial projections. Being prepared to answer these questions with solid analysis, research, and evidence will instill confidence in potential investors and increase your chances of securing funding for your business.
As a Venture Capital (VC) investor, there are several key questions you would ask an entrepreneur presenting their business to you. These questions aim to evaluate the potential of the business, market understanding, competitive advantage, team capability, risks, target customers, and financial projections. Here is a compilation of the most likely questions you would ask:
1. What is the potential total market size for your product today, and what is its growth rate? How did you calculate this?
2. What potential market share can you achieve? How did you estimate this?
3. Why will people buy your product instead of something else? What need does it address, and what sets it apart from the competition or substitutes?
4. What is your competitive advantage, and why can't it be easily copied? What are the barriers to entry?
5. Why do you believe your team is best placed to deliver your business plan and forecasts?
6. What risks do you anticipate for your business?
7. Who are your target customers, and how do you plan to acquire and retain them?
8. Why will customers stay or do repeat business with your company?
9. Have you considered any alliances or partnerships to leverage opportunities in the market?
10. What are your cash flow projections? When do you expect to break even? How much investment will you need?
These questions help you assess the market potential, competitive positioning, uniqueness, team capabilities, risk management, customer acquisition and retention strategies, and financial viability of the business. The entrepreneur's responses will demonstrate their understanding of the market, their ability to differentiate their product, their awareness of risks and challenges, and their financial acumen.
On the other hand, if you have started a business yourself and are seeking investment from a VC investor, you should expect similar questions. VC investors will be interested in understanding the market potential, competitive landscape, your unique value proposition, team dynamics, risks, customer acquisition and retention strategies, and financial projections. Being prepared to answer these questions with solid analysis, research, and evidence will instill confidence in potential investors and increase your chances of securing funding for your business.
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