Small Business

Pop quiz: Vencap challenge

Written by Allan Britnell

Venture capital can push a company from the brink of stardom into the limelight. Take this snappy true-false test to find out if you have what it takes to win VC.

Answer True (T) or False (F) to each of the following questions:

My company…

1. Is in a field favored by VCs: software, biotech, medical or telecom.

2. Has a proven management team with experience in our sector.

3. Employs a management group that has invested significant personal funds in the firm.

4. Has a solid, concise business plan that looks five years ahead.

5. Owns a patent, trade secret or other unique advantage over the competition.

6. Has a product that is several times better, faster and/or cheaper than anything else on the market.

7. Has positive cash flow or significant sales commitments.

8. Can reasonably expect to at least double its revenue within 3 €“ 7 years.

9. Is ready to evolve from “my baby” to a firm accountable to outsiders on a board of directors.

10. Will be ready for an IPO (or other profitable exit strategy) within 3 €“ 7 years.


Take two points if you answered “true” to Q1, and one point for every other “true” response. If you scored…

9 to 11: You’re almost ready to open a new bank account. Unfortunately, even a perfect score doesn’t mean a perfect fit with every VC.

5 to 8: VC isn’t for you — yet. Take a closer look at your team and your business plan.

0 to 4: Does your Aunt Gladys have any cash to spare?

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