You are on page 1of 1

How VCs Evaluate Potential Venture Opportunities Areas For Discussion

Objective: Learn what VCs are looking for and how they evaluate opportunities. Questions For Discussion: 1. How does KPCB contrast the characteristics of an early stage entrepreneur versus a seasoned manager that is brought in when the company is later stage? 2. What are four aspects of due diligence as discussed by KPCB? 3. What is the most important attribute to assess for each VC and why? 4. In general, how large of a market is required? How large does revenue have to be after 3-4 years? 5. Do the VCs put more emphasis on bottoms up or tops down revenue forecasts? 6. In terms of exit events, what do the VCs target? 7. What do most of the VCs do at the end of their evaluation process to summarize the potential investment? 8. When does KPCB use a tranched investment? What are some of the potential issues with using tranched investments per Trinity Ventures? 9. According to Alta, predicting the timing of an acquisition can be dicey. As a result, what do they focus on instead?

You might also like