Navigating the Pitch Process: Questions Startups Should Ask VCs

Navigating the Pitch Process: Questions Startups Should Ask VCs

As startups face constant rejections, it's easy to lose morale. But remember, the journey is as important as the destination. In the current landscape, especially in ASEAN, the activity level of many VCs has been notably low. In fact, most haven't made any investments in the past 15 months. This raises important questions for startups pitching their ideas.

It’s crucial to understand that VCs may not only take calls because they're interested in investing. Often, they also aim to update their database, keeping a pulse on the market and scouting for future opportunities. Knowing this, here are some essential questions you should consider asking VCs during your pitch:

1. What specific sectors are you actively investing in at the moment?
2. How has your investment strategy changed in the past year?
3. Can you share the most recent investments you’ve made, and why you chose those companies?
4. What are the key factors you consider when deciding to invest in a startup?
5. How do you support your portfolio companies beyond capital?
6. How well do you understand the industry we're in, and how many other companies in this space have you evaluated?
7. For those companies you passed on, can you share why you chose not to invest?

These questions can help you gauge a VC’s genuine interest and understand their current investment focus. If VCs are not comfortable answering these questions, they might not be the partners that you need. Remember, every pitch is a two-way street. You're not just selling your vision; you're also selecting partners who believe in your journey and can add value beyond the check they write.

Stay persistent, stay curious, and most importantly, stay resilient.