Wednesday, October 20, 2010

Questions you should ask a venture capitalist

It's not just you to be examined in relationship to someone who has the money you want to get your business - you must also examine those who want to invest in the company (many forget to review the investor in pure delight that someone believes in them).

Money is good, but it is also important to find out who is behind the money and what you can expect from them. You do not want an over-controlling, cowardly and pushy investors in your company because you will lose the urge to time.


Here are the questions you should ask a venture capitalist:

Why would you invest in this company?

What are your resources besides money that can help the company forward and how do you like us to use it?

What part of this company do you most?

What other kind of business you have invested in the past?

Is it okay if I contact the other companies you invested in?

How quickly do you expect to get results from your investment?

How would it affect you if you lost money you invest now?

If you knew that I was not able to build this company to the level you want, what would you do?

How do you see in front of you that decisions are taken and by whom?

What role would you have in your company?

These questions are important to you to get the answers. Sure, you need the money but you do not have headaches every day if he who pays the money is completely wrong person for your company.

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