Many startups that have talked to me are looking for funding right now. X% of them are not going to get it - don't be that startup. Take the test and tally how many yeses you get for the questionnaire.
Idea
Solving a real world problem - are you solving a real world problem for a sizable market?
Do you have domain expertise in this market? Could you learn it fast?
Team fit - does your team fit your problem space?
Technology requirements - does your team have the tech requirements to solve the problem?
Can you launch in a couple of months?
Does your company require a sensible amount of capital to get moving?
Does your startup scale well? E.g. can you build a positive network effect as your grow.
Market Characteristics
Large Market - is the real market that you are operating in at least a $bn market?
Growth Market - is your market growing fast?
Sustainable market - is your market a long term market that is here to stay for at least 5 years?
In line with trends - is your business in line with where you think the market is going?
Revenue
Do you have clear monetization strategies that makes 'back of the envelope' sense?
Can you make money within 1 year?
Can you clearly monetize your user base?
Can you cite other analogous companies making money in the space?
Growth
Do you have innovative distribution strategies (i.e. not PR)?
Do you have alternative distribution strategies if your main one fails?
Are people using your product?
Do you have users coming back for more and telling their friends?
Is your growth exploding?
Long term viability
Can you build barriers to entry in your market?
Is it a market you want to spent a significant time in (on a personal level)?
Are there no major legal risks that might take out your startup?
Team
Are you really in this for the long term?
Is this your project that you are willing to do what ever it takes to make it work?
Have you done a startup before?
Have you touched money before?
Do you have strong programmers on the team? Could you recruit strong programmers?
Do you want to build a large company?
Are you willing to relocate?
Execution
Do you have analytics based approach to product decisions?
Do you launch first, ask questions later?
Do you keep improving the product?
Do you dream at night about your startup?
Do you tell everyone you know about your startup?
Are you working 6-7 days a week?
Pitch
Is your deck interesting?
Is your deck 10-15 slides?
Does your deck answer the above questions and prove them out a bit?
Is your deck clear to understand and using the correct business wording?
Is your valuation inside the normal market range for your offering?
Investors
Do you have contact to investors?
Are investors keen on your business?
Do you understand term sheets?
Have you got a professional, decent round lawyer?
Peer group
Do other good entrepreneurs like your startup?
Do your friends like your startup?
Does your granny like your startup?
Are good entrepreneurs willing to introduce you to their investors?
Does the media like your business?
Does the blog/tweet sphere talk about your business?
0-10: Deadpool
11-24: Spend some time asking yourself, how you can change your startup to have more yeses.
25-34: You're going to have to work hard for your funding.
35-44: You should get funding from Tier B investors.
45 - 51: Tier A VC funds will chase you down.
Posts
