How to apply for funding
M-Tech Innovations invests in early-stage technology startups. Before investing, we generally want to know answers to many questions, including the ones here. It's a good idea to prepare a "pitch deck" that addresses as many of these questions as possible. Be prepared before presenting your company to investors.
Product and Service:
- Describe your product or service
- Who would use it?
- Why would they want it? What problem does it solve?
- How does it work?
- Please summarize the history of the company -- who founded it, when,
what was the original concept? Who was on the original team? How
did the company evolve to its current form?
- What is the ownership structure? (shares outstanding, owners, etc.).
- Is there any outstanding debt?
- What markets will you sell into?
- How large are these markets?
- Do you have a priority sequence / schedule for addressing
- Who is the competition? It doesn't have to be 1:1 equivalent
products or services - but what alternative products and services
might customers select instead of yours, to address broadly
- What are the barriers to entry for competitors?
- What advantages do you have, that would lead you to
win deals over competitors?
- Is there a community or ecosystem where you could meet new
- What sort of organizations do you currently or might you in
the future partner with? What would the commercial relationship
be and who would deliver what value to end customers?
Technology and Product:
- Please share demos, screen shots or other product
- Do you have customer testimonials?
- Can we talk to a customer or prospect about their interest and/or
- Do you have sales materials we can see?
- Do you have technical documentation we can see?
- Please describe the technology platform -- runtimes, programming
languages, databases, network protocols, scalability numbers.
- Please describe your product testing methodology and metrics.
- Please describe your DevOps processes and test/dev/prod
- Do you have a technological advantage? Please describe if
- What product features or architectural changes do you plan
- What is your development / release cycle? How often do you
bring new capabilities to market?
- What intellectual property do you own and how do you protect
- Do you license intellectual property from any third parties?
Please describe what it is and how it's licensed.
- Do you sell to end consumers, to businesses or to government
or other non-profit entities?
- How do you plan to scale up your business?
- What is your pricing model? Who pays, what do they pay and what do
- What is your strategy for acquiring new customers? Do you have a
track record and roadmap for customer numbers?
- Do you plan to sell directly to end customers or via reseller or
- What are you doing to raise awareness of your solution now and what
do you plan to do in the future?
- Describe your sales and marketing team. Who is doing what?
- Describe your customer acquisition process. What are the milestones
and how long does it take?
- Do you have a proof of concept process? Is it for pay? Who has
completed it and who is in the pipeline?
- Do you have a roadmap for growing into new markets? What markets,
when and how?
Management and Organization:
- Describe your current and planned organizational chart -- who
- What is the background of your management team?
- Are you getting (or open to) mentorship and advice from outside
parties? From whom?
- What is the base (fixed) and incentive (variable) compensation
plan for current staff? Do you plan on changing this in the
future or for new staff?
- Be prepared to share existing and template contracts -- with
employees, contract workers, customers, suppliers, partners,
- Are there any outstanding claims against the company --
for example relating to employment, IP, service delivery,
- Does the company have any outstanding obligations such as for
severance, debt repayment, leases, etc.?
- Please share your cap table - who owns what shares?
- Please share historical financial statements - audited if
- Please provide the current (fiscal) year budget.
- What is your long-term financial forecast?
- What organizations are in your sales pipeline? For each one
-- who is the account manager? at what stage of the process is
the customer? what is the probability of closing? what is the
value of the deal?
- Who are the top-10 paying customers and what are they worth?
- What sources of financing are you seeking in the near term?
- What would be the exit strategy for investors? e.g., the company
is purchased? IPO? Ongoing dividends?
- What do current receivables and payables look like?
- Are there any outstanding loans? Collateral arrangements?
- Has the company made guarantees or offered any indemnities,
whether secured or unsecured?
- What "non-dilutive" sources of funding have been accessed and what
applications are planned? (i.e., government grants)
- What insurance coverage does the company have?
- How much money are you planning to raise?
- How much is the company worth prior to the raise?
- How do you arrive at this valuation?
- Are there comparable companies? How does your estimated
- What percentage of the company's ownership will be assigned to new
- What do you intend to buy with these funds? Be as specific as
possible -- i.e., "Use $X to hire Y people to accomplish Z tasks
starting on date D and completing by date E."
- Are you aware of private company investment or take-out
transactions in your space? How does your valuation compare?
- What is your plan for an exit strategy -- i.e., being acquired
by a company such as X in timeline Y for value Z.
- When do you anticipate raising additional capital? How much? How
dilutive do you anticipate this will be?