How will you make money (and no, advertising is not the answer)?
Who, specifically, is your first customer? Second? Third?
What is your contingency plan for when this seed round is exhausted, and you are unable to raise any more?
What is your API/platform/partnership strategy?
How are you going to sell the company, and to whom, within six years?
I’ve written on this topic previously, including David S. Rose’s answer to Startups: What is the worst startup pitch ever?. While I’ve never laughed outright during a pitch, I’ve certainly had quite a few occasions where I had to work hard not to wince. The problems with bad pitches tend to fall into the following major categories: Read more
Marketing strategy actually is quite important to most investors. The bottom line is that if no one shows up to buy or use your product, it doesn’t matter one whit how cool or great or innovative it is. And investors do not like top-down projections (“we’ll get a 10% market share…”). They very much want to see how you are going to get your first customer, and your second, and your third.
*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *
Unfortunately, VCs do not typically review business plans. Instead they look at a brief summary, and then decide if they want to invite you in for a meeting. Read more
Unfortunately there’s nothing that can be generalized, because each case is different. Realistically, most angel deals are very early stage, which means that reliable metrics are pretty hard to come by. So most of the number crunching and ‘what if’ analyses tend to focus on customer adoption and revenues. Read more
Unfortunately, the reality of entrepreneurship is that raising seed funding is much, much more difficult than you have been led to believe from the press reports about early stage financing. Only one out of every 400 companies seeking funding from venture capital firms actually receives it. And even when trying to raise much smaller amounts of money from individual ‘angel investors’, the odds are still worse than one in 40. Read more