Olga S.
✶ Passionate European funky brand strategist ✶ Offering creative, web-enabled strategies to build your brand
Do venture capitalists ask startups about their brand strategy?
Last year, I wrote a blog article giving the reasons why VC's should ask startups about brand strategy. I want to write a follow-up, and would like to include a couple of examples of VCs looking at the brand potential of startups.
http://www.schmoozyfox.com/2010/07/05/venture-capitalists-brand-strategy/
Clarification added 8 months ago:
Some of your answers mention various topics -- other than branding -- that VCs look for in a business plan. I'd like to clarify that, having experience with business plans myself, I wanted to collect responses from companies which successfully included brand strategy aspects in their plans (as a result, attracting investment), or, from VCs who have asked startups about their brand potential.
Answers (8)
Robert B.
Owner, E-Business Planet LLC
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Olga: I don't think this is a major item for a vc unless the company already relies on their brand for sales. I think in rare scenarios, they would ask.
Babette T.
Leveraging sales & technical collaboration
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Agreed. Brand strategy comes into play later, after the startup has proven they are a viable investment for the VC.
Wallace J.
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I have an extensive brand strategy section in all of my business plans, so absolutely! ;)
Links:
Jurgen J.
SAP Consultant - Business & Project Accelerator
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Hi Olga,
When reviewing business plans, focus quickly goes to different aspects:
- What is the core concept?
- Do the financial make sense?
- What is the proposed strategy to get to these results?
Set aside eventual involvement of more directing power, funding may be conditioned by requests in an adaptation of each of these components. If the brand strategy is an important driver in the concerned industry/type of business, it will be taken into account with more attention. But in the end, it is the bigger picture that counts: will investing in this business result in the desired profits?
Note that the level of funding (BA or VC) plays an important role in it too!
Looking forward to continued exchanges.
Kind regards,
Jürgen
It is part of the analysis...but they aren't hung up on 'brands' if the product is a dude.
You can have the best 'brand' in the world but if no one is knocking on your door for it, what does it matter.
I have never seen this myself and every VC would have their own benchmark. However, I think this is important enough to be part of most VC's checklist.
Any investor would be interested in knowing all info that affects value of the company. "Brand" is one of them. Since, you have talked about VC, I am assuming that the venture won't be small and "brand" will matter much more than a new-bee in the market.
So, yes VC could ask about your brand strategy.
Judy H.
*Exp. CEO & Speaker *Leadership Development Specialist *Mentor & Coach to SMEs *Writer, Trainer and E-learning Designer
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Hi Olga,
When working with a VC organisation, we did ask many questions about this type of thing, becuase it isn't about the numbers by themselves - it's how the startups have planned to generate and improve their numbers. Without marketing and branding plans, amongst other things, there appears to be no strategy - not a good investment for anyone. VCs are always investing, but if the people aren't right and determined to make a go of their business, all the great ideas in the world won't help!
figures and key people first....
