Professional Documents
Culture Documents
Investor FAQ
Investor FAQ
FAQ
● What is the problem you are trying to solve ?
● Is it scalable ?
● What are the bottlenecks to scale
○ Manpower
○ Infrastructure
○ Setup / Hardware cost
○ Other industry bottlenecks / regulatory
● Is the market ready for this kind of service/product
● Where is your MVP ?
● Who are your paying customers ?
● What do your customers say about your product/service ?
● How many similar consumers do you expect to come ?
● What is your revenue model ?
● What is the unit economics like ?
● What is the cost of customer acquisition ?
● What is the customer lifetime value ?
● What is the market size ?
● Market segmentation charts
● What is the customer segment you are targeting ?
● What is stopping you from scaling right now ?
● How much funds do you need ?
● How are you going to deploy your funds ?
● When are you going to break even ?
● When are you going to be cashflow positive ?
● What is the exit you propose ?
● What is the pre money valuation you propose ?
● How much are you willing to dilute ?
● What is the competition landscape like ?
● What is that you are doing uniquely that nobody else is doing ?
● Are you the first/early mover ?
● Why is that nobody else is doing what you are doing ?
● If it is a me too model, what is your mote ? (Patents/any other killer advantage)
○ What if somebody else comes in with more funds into the market ?
○ Is it easily doable by anyone ?
● What is the brand building activity ?
● Are there any legalities/ risks in the model ?
● Is there any wastage/ refund/ return ?
● How do you ensure your service levels ?
● What is your team and skill set and background of founders and core members ?
● What is the composition of your team ?
● Do you have domain expertise ?
● Is there any people dependancy ?
● Are you having ESOPs for your employees, what is the structure ?
● What is the current CAP table ?
● What is the set up/ fixed costs ?
● Are you asset light ? If so why / if not why not ?
● What are the NPAs (non performing assets) on your balance sheet ?
● How much cash is there in bank ?
● What is the current burn rate ?
● How many months do you have before you run out of cash ?
● What are the milestones for this funding ?
● What is the projected burn rate post funding ?
● What is the split of spend across operating cost / marketing / technology ?
● How long this money you are planning to raise will last ?
● What is your customer acquisition strategy ?
● What is your customer retention strategy ?
Behavioral questions :
● How do the founders know each other / how long they have been together ?
● What do the founders take care of ?
● What is the founder's salary ?
● Who is the CEO ? / Whose decision is final in case of non resolvable issues ?
● What is your mission ?
● What excites you guys to do this ?
In case of internet products
● Who takes care of technology ? (Team )
● How scalable your platform is ?
○ How many concurrent users can it handle right now ?
● Is your platform stable ?
● Is the platform mobile responsive ?
● What is your technology stack ?
● Where do you host right now ?
● What is your mobile strategy ?
● Will users be interested in installing such app?
● How do you marketing plan on app installs ?
● Projections on app installs.
● Product mockups and details
Metrics :
● Users
● Returning users
● Bounce rate
● Transactions
● Ticket size ( Transaction value)
● Revenue run rate
● Gross profit
● Current burn rate
● Cohort analysis
● Customer acquisition cost
● Customer lifetime value
● Conversion rate
● Click through rates in advertising
● Testimonials
Termsheet stuff
● Internal rate of return
● Right to first refusal / Right to first offer
● Tag along / Drag along rights
● Liquidation preferences
Use this :
http://www.investopedia.com/ to find meanings of words you could not figure out.