At Forum Ventures, we pride ourselves on really getting to know the founders we invest in, and creating (what sometimes is the only) space for them to drop their front and be vulnerable. As a result, we often get texts or calls in the middle of the night from our portfolio founders with urgent, confidential, and sometimes “embarrassing” questions. This series chronicles example founder texts and how we answer them.
First, this is a good thing. When a VC brings in more partners to meet you, it means they’re leaning in. They already believe in the market opportunity, your vision, and you as a founder. This next meeting is about deeply understanding your business before (hopefully) offering a term sheet.
In this meeting, they are likely going to ask you about your team, the competition, and your go-to market strategy. Here’s what you need to walk in with:
When VCs invest at the early stages, they are taking a bet on your team as much as the market opportunity. A good opportunity without the right founder(s) will not succeed. With that in mind, they will want to know about a few things:
Competition can kill companies of all sizes, but can especially young, cash-strapped companies. If you’re a category creator / disruptor, there are likely several others trying to do the same thing at the same time, racing to be first to market. Alternatively, there could be large incumbents looking to build this same thing in house. VCs will want to know more about:
Be prepared with information around:
(We have an entire Playbook on GTM if you want to learn more)
Honestly, that’s really it.
Oh, and one last thing: Don’t pull an answer out of thin air. If you don’t know the answer to a question on the spot, tell them you want to verify and follow up instead of possibly giving them an incorrect answer immediately. Then make sure you follow up as soon as possible.
Any other questions? Ask away.
For more founder-focused content and to receive resources like this directly to your inbox, subscribe to our "Midnight Text" Newsletter!