One of the objectives of the vast majority of internet entrepreneurs, if not all, is to obtain financing through venture capital, but what are the most frequent questions that investors ask and what businesses are they pointing to? when to invest?
Every entrepreneur who wants to access the capital of large investors must be prepared for a meeting with them, in addition to a good business plan, he must organize an excellent presentation of his idea and be willing to answer some questions that will surely be asked. Here are some of them:
| Why the Internet for your product? |
| How will you fight the competition? |
| To what extent do you think the few barriers to entry push down margins? |
| What is the average acquisition cost? |
| How much money do you need and what will you invest it in? |
| How long will that money last and what will you get out of it? |
| To which markets will the business expand? |
| What are the sources of income? |
| What percentage of the funding you are requesting is for marketing and what type of promotion will you use the most? |
| What volume estimate does the target market have, and what market share does it hope to have? |
| How do you generate liquidity in your market? |
| How does the existing infrastructure limit its development? |
| Who are your first hundred customers, and how do you achieve critical mass? |
| Have you checked in at least once? |
| What is the sales process like, and how long does it take to execute a sale? |
| What is your main market? |
| In areas with low Internet implantation, how will its use be implemented? |
| Who performs the risk analysis of operations? |
| As your service is free, what will happen if the big portals offer it too? |
| Do you pay for the tools you use or are they your own developments? |
| What percentage is left of the advertising generated by your website? |
| What percentage of the available advertising is contracted? |
| What are your sources of income? |
| What percentage of the traffic do your first five customers represent, and what happens if they want to leave? |
| What is the estimated income in the next 12 months? |
| What is your competition and why do you consider it competition? |
| How will you break the established pattern in the market? |
| How will you convert traffic to revenue? |
| How will you compete with the big boys? |
| How do you plan to earn money? |
| How to fight with the next competition? |
| What equipment do you have, and how do you plan to improve it? |
| How many people make up your team and what is your experience? |
| Do you plan to have a version with technology for mobile telephony and palms? |
| If the business is not successful in five years, why do you think it did not? |
| What are the top five risks and how do you plan to minimize them? |
If you have answers to all these questions, you are surely prepared for your meeting with investors, if you still need to answer some, it is better that you prepare to have greater security.
