When startups want to grow faster, they usually approach potential investors for funding. The success of financing rounds more or less depends on how fast your company is growing. It also depends on how much money you get in each of these rounds. However, the most difficult part is answering questions from venture capitalists about your startup during your pitch. It is therefore important that when you go to look for funding, you master all of the following information:

1. About the company

Investors will want to have an overview of the company seeking financing. They will want to know things like what the company does, what’s unique about the company, what problems it solves, where the company headquarters are, and how big the company intends to get.

2. About the market

This is another important detail when it comes to interviews with venture capitalists (VCs). What you are looking to do while answering questions about the market is to assure the VCs that the market is huge, growing, and will probably be worth several million bucks in 5 years or so. You should expect to answer questions enlightening them on what exact market the product is addressing and how you calculate sales in your industry. Furthermore, be prepared to explain why your company stands a chance in the current market, and what percentage of the market you intend to attain over what period of time.

3. About the founders and team

Mark Cuban has always said on Shark Tank that when he invests in a company, he gauges whether the team and the founders are worth investing in or not. Suffice it to say that to most VCs, a sound founding team is as important as any profits the company has made or will make. In this section, you should expect to open up on issues about how many members you have on the team. It’s also important to explain why they are the ones uniquely placed to reach the company’s objectives. Talk about their skills and expertise and how you plan to increase the number of employees in the short and long term.

4. About the products or services

Investors will want extensive information about your product or service. The first thing they are going to need from you is a very elaborate presentation that demonstrates how the product or service works. Be prepared to answer other questions addressing why your product is unique, what lessons you have learned while building the product so far, and what features you plan to add.

5. About the competition

Any business under the moon has competition. Since there are few completely unique ideas in the world today, success depends on your execution of the idea and finding something to give you an edge over the competition. The investors will want to hear how you plan to beat your competition. In order to answer this question fully, make sure you explain how your product is different from what the competition provides, and what gives you an edge. To sum up, investors will expect you to have studied your competitors carefully and to know their prices, features, and performance.

6. About intellectual property

This is very important information when it comes to funding. If you have innovated something, the investors will want to know if patents were issued pursuant to the innovation. They will want information on patents, patents pending, copyrights, trade secrets, trademarks, and domain names. Assuring them that your company doesn’t infringe on any third-party rights is also important.

7. About financials

Investors are keen to know whether your company makes money or not. There is nothing as important to investors as money. Venture capitalists are interested in businesses that have found a sustainable model to make profits while catering to their expenditures. They will also want projections on how much money you will be making in the next 1-3 years. If your company hasn’t reached profitability yet, they will be keen to know your projections for reaching profitability. Beyond this, you need to be prepared to answer other questions about the cost of creating your product or service.

8. About customer acquisition

Venture capitalists will want to know about the marketing efforts your company is currently engaged in and how much it costs to get one customer. The types of advertising you are doing will also come into question. You should also be ready to answer questions on your social media and PR strategy.

9. About risks

Venture capitalists want to know what they are getting themselves into. They will need to be informed of any legal, regulatory, product liability, and principal risks the startup faces. There will always be risks in any business plan.

10. About your marketing and PR strategies

While this might seem like irrelevant information, venture capitalists actually gauge your potential for growth through the kind of marketing you’re undertaking. If you have no clear indication of having developed any marketing and PR strategies, then you’ll have a hard time inspiring them to believe in you.

How Pressfarm can help with this

Sometimes founders get overwhelmed when tasked with developing an exciting product and simultaneously doing PR for this product. If you’re one of those founders who would rather hire experts to take care of your PR so that you can focus on product development, then you should consider signing up with an agency like Pressfarm. Pressfarm is run by a team of PR experts who are skilled at generating publicity for brands across different industries.

After years of working with brands in almost every industry from tech to fashion and sustainability, and everything in between, our team has what it takes to generate publicity in any industry. Our PR writers are skilled at writing press releases that will capture media attention and spark a journalist’s interest in your brand. These writers also have years of experience developing engaging feature stories that will excite your target audience and inspire them to try your product. In addition, with our team of designers, we can develop creative media kits that will help you create a memorable brand image.

Beyond creating quality content, the team at Pressfarm is dedicated to developing an effective media outreach strategy to help you push this content out to the right people. To this effect, each client gets personalized media lists containing media contacts in their industry. Additionally, all our clients have access to our comprehensive database of over 1 million journalists across different niches.

With Pressfarm you can create content that will turn heads. Sign up today, connect with the right journalists to tell your story, and finally generate the publicity your brand deserves.