11 questions from the mainstream VC survey of a start-up company

Although it is called venture capital, the goal of VC is not to maximize risk, but instead to try to understand the risks that a company may face and assess these risks, from the VC point of view, before investing in a start-up company, will focus on what risks? When a start-up company wants to finance the VC, can you answer all these questions?

Market timing Risk: Is this the best time to develop this business? It's a difficult question to answer, but it's very important, and a lot of people will say that I've made social networking sites before http://www.aliyun.com/zixun/aggregation/1560.html ">facebook. I started searching before Google appeared, but the first one did not necessarily have the most success. In a word, too early to enter the market has not realized, too late into the Red Sea.

Business model Risk: Do you have a clear business model for your project? Is the unit economy feasible? If not, if you want to make a profit, what are the assumptions?

The market holds the risk: do you have a strong competitor in your market? What are the main barriers to entry?

Market scale Risk: If the company succeeds, the exit scenario is sufficient to provide the various returns required by the fund.

Execution risk: Does the entire team have the right skills and enough enthusiasm to achieve their goals? If not, are they willing to find someone else to improve their skills?

Technical risk: Is it necessary for the company to develop a new technology that may not reach its goals or take longer to reach its goals? The problem is more common in hardware companies and in the cleaning technology industry.

Capitalized structural risk: Does the company have enough room to get more money to develop the company while ensuring that employees and executives get good treatment?

Platform risk: Is the start-up project based on Sina Weibo, for everyone, Youku (or Youtube,twitter or Facebook), or? How is the relationship with the platform? is the product plan consistent or complementary to the platform direction?

Risk Management Risk: is the company receptive to feedback? Does the team confess to the company?

Financial risk: How much money does the company need to achieve the goal? Based on the current environment and company track, is financial risk manageable?

Legal risk: is the company susceptible to legal action against patents and copyright infringement? Is the company clearly dissatisfied with its early employees or founders? Is there a regulatory problem?

If you are an entrepreneur, when you want to raise money, when VC to ask you these questions, how do you answer? Do you usually think about these problems, if you are VC, whether you are also thinking about the same problem?

Via Tomasztunguz

Source: http://www.leiphone.com/0820-annie-vc-risk.html