Competition Related Questions That An Investor May Ask

Here is the list of competition related questions that an investor may ask:

Which companies compete with your start-up?

What market share do they control?

What is the revenue of the competitors?

Which other companies compete partly?

What is your competition strategy?

How many companies can get into the same business model after hearing a funding story?

Has any other company failed in executing the same business model?

What was the reason for the failure?

If there is no competition, then why did it happen?

Is there any similar company, globally?

How successful or otherwise is that company? Investment and diligence

Are there any large partnerships which can help propel the business?

If yes, what do the partners say about the company and the partnership today?

What would happen if a large company were to enter this category or business model?

How much money has been put into the company so far?

Is there any debt liability on the entrepreneur, which had been taken to start this company?

Does the company have any angel investors?

Do the angel investors want an exit or are they willing to stay invested through this round?

How much money does the company need?

What is the break-up of the money needed?

How much money from the investment will go into CAPEX or a one-time purchase?

At what stage will the company be after spending this money?

What is the start-up going to use the money for? Prove the concept/ idea a little more, go profitable, sustain till another round or reach a potential exit?

If another round, then how soon will the company need it?

Does it need all the money in one or two installments?

How far can the company reach if it does not get funded?

What are the exit options?

Can this company go public?

Who would be a potential buyer for this start-up?

What would be the strategy of those buyers as regards the business model/ product this company runs?

How much time will it take before the investor can exit?

What will happen if this business model fails?

Which are the adjacent business models this company can create?

What will be the five main hurdles for the company when trying to scale?

Are there any government policies that might affect the business of the company?

Who can be contacted to validate the business model?

What are the assumptions made in the business plan?

What can go wrong in the projections?

Does the company have any pending litigations?

Has the company been audited in the past? What does the audit report say?

Does the company compete with any of our other portfolio companies?

Learn more about various questions that an investor may ask, only at the University Canada West, one of the best-known universities in Canada, offering various business and management related programs.