“What if Google enters your market” – is among the top scariest questions asked by investors and founders often struggle to take this conversation to a meaningful level. Below thread provides you some great perspective.
Every business at every stage has them, things like “what if Google enters your market?”, “what if CAC goes up”.
I have noticed that devolves into a long, negative conversation that doesn’t resolve the issue and makes it seem like an even bigger deal than it is.
Question: what if Google enters the market?
Answer: Google has shown they don’t care about this market, the last 5 products they launched were a flop and it’s a huge market anyway.
Concern: “SMB CACs are too high”
A: “We focus on startup founders that are in community with strong word of mouth. We also make >$2k/yr in revenue from a funded co and SMB CAC in comparative fintech products is $200-$300”
Best way to get there is to practice and iterate your answers.
Anyone have other fun, hard-to-answer fundraising questions?