Considering Making a VC Investment? Questions You Need to Ask Before Writing that Check!

We’re often asked, what is GingerBread Capital’s investment model? How do we decide what companies to invest in?

As a female-founder focused fund, GBC has a specific mission: to invest in and support exceptional women entrepreneurs who have the capacity to build and scale tech-enabled enterprises. We are industry agnostic. That is, our portfolio companies span the universe–from fin tech to education, fashion to health & wellness, to work spaces and food & beverage. Across all of our investments, what first gets us to sit up and notice are visionary, dynamic founders with exceptional execution skills who possess high conviction, passion and drive. Learn more about what we look for.

Many will argue that venture capital investing is more art than science. But it’s not just “going with our gut” or the favorable impression a founder makes on us during her pitch that drives our decision on whether to invest in her  company. Our diligence includes a series of questions in five key areas that every potential VC investor should ask before writing that check. Whether you’re a founder or a potential investor, this checklist can help bring more focus to the next  pitch session you attend.

To Invest or Not Invest: Five Key Areas to Consider

1. Captivating Back Story

  • Who is the founding team and what makes them uniquely qualified?
  • What is the problem or opportunity?
  • How big is the problem?

2. Differentiated Business Model

  • How does the company solve the problem?
  • How much does the product/service cost?
  • How much does it cost them to make it?
  • How long do they retain their customers?

3. Competitive Landscape

  • Who is the competition?
  • How do they differentiate themselves in the market?
  • Is there any proprietary IP or strategies to keep the company ahead of the competition?

4. Scalability

  • How much does it cost to acquire a customer now vs. at scale?
  • What are the key performance metrics?
  • Can the founder/s share up to three key milestones?

5. Financing History

  • How much capital has the company raised to date?
  • How much is the company currently raising?
  • How will the proceeds be used?
  • What key milestones does/do the founder/s intend to hit with the funds?
"The dearth of capital flowing to female founders and in the hands of female investors can also be seen as our industry's biggest opportunity areas."
Ita Ekpoudom, GingerBread Capital