A Venture Capitalist points to Allen Morgan’s fourth commandment for entrepreneurs:
So…you’ve obeyed the first three Commandments:
· Commandment #1: you’ve contacted the right partner in the VC firm,
· Commandment #2: you’ve arrived early to make sure you’re ready to roll when the VC (who will usually be late) shows up, and
· Commandment #3: you’ve tried your best to carefully crafted your pitch so that it “teases, but doesn’t overwhelm”. ....
Here are a few suggestions:
· Ask how any of his relevant portfolio companies relate to your startup idea (and make sure that you’ve visited the web sites of those relevant portfolio companies).
· Ask what other startup deals in this space has he looked at,
· Where does his interest in the space come from,
· What does he see as the major problems facing any startup in this area, etc.
· Listening carefully to the answers to these types of “range-finding” questions will help you make sure you don’t inadvertently head off in the wrong direction – which many entrepreneurs, believe it or not, do.