TechCrunch+ Roundup: 20 Questions VCs Are Asking, Crypto Compliance Tips, Indian Investor Survey

by Arthur · March 24, 2023

Image credit: Kevin Johnson Visuals/Getty Images

The increasing pace of tech layoffs is creating increasing uncertainty for workers, but it’s giving investors access to a new wave of tech and entrepreneurial talent.

There is no easy test to determine which aspiring founder can turn their idea into a billion-dollar business, but VCs who know what questions to ask can uncover the right mindset, says Sanjay Reddy, co-founder of Unlock Venture Partners.

In this TC+ article, he shares a comprehensive list of questions he asks first-time founders to gauge their relative strengths and weaknesses across multiple vectors.

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This post isn’t angled solely at VCs and angels: Reddy states that investor “trust is usually based on pattern recognition,” meaning aspiring CEOs need to be able to answer specific questions like:

“Why are you doing this? Passion? Mission? Chip on your shoulder? Faith?”
“Do you have control over your finances, both personal and business?”
“How do you communicate your message to investors, colleagues, potential partners, etc.?”

There are tons of barriers to launching a startup, but imposter syndrome doesn’t have to be one of them. Anyone who can confidently answer the 20 questions in this post is ready to pitch an investor, IMO.

Thank you very much for reading TC+, and have a great weekend.

Walter Thompson
Editor-in-Chief, TechCrunch+
@yourprotagonist

Table of Contents

3 Tips for Crypto Startups Preparing for Continued Compliance

Image credit: cagkansayin (opens in new window) / Getty Images

Most startups can avoid getting into the weeds of legal issues before launching, but crypto companies are in a different boat. Faced with a tangle of state and federal legislation, inadequate compliance can quickly generate regulatory problems and undermine customer confidence.

In a TC+ post written by three attorneys from the law firm Norton Rose Fulbright US LLP, the authors share basic information relevant to all crypto startups operating in the United States.

“By establishing a robust, risk-based compliance function … and staying abreast of the latest regulatory guidelines, cryptocurrency companies can better position themselves to weather the crypto winter,” they write.

4 Indian investors explain how their investment strategy has changed since 2021

Image credit: tax (opens in new window) / Getty Images

For our latest survey, TechCrunch reporter Jagmeet Singh asked four Indian investors how their work has changed since the global tech downturn began.

Venture capital funding in the region “dried up in the second half of 2022,” so he asked about their current deal-making pace, what investment trends they’re seeing and how founders can reach them.

GV Ravishankar, Managing Director, Sequoia India
Ashutosh Sharma, Head of India Investments, Prosus Ventures
Vaibhav Domkundwar, CEO & Founder, Better Capital
Roopan Aulakh, CEO, Pi Ventures

How Fellow started for 8 years to build a coffee empire

Image credit: Shark Kamps (opens in new window) / TechCrunch (opens in new window)

It takes a lot of work to turn a college project into a self-funded hardware startup.

Fellow first came to attention in 2013 with a Kickstarter campaign to fund the production of the Duo coffee machine. Although that item turned out to be a dud, Fellow now sells a line of high-end boilers, grinders and other equipment. Last summer, the San Francisco-based company announced a $30 million Series B round.

“Looking back, it was absolutely right not to raise institutional money early on,” CEO Jake Miller told TechCrunch+. “We only exist today because of that choice.”

Ask Sophie: What visas will allow us to expand our startup in the US?

Image credit: Bryce Durbin/TechCrunch

Dear Sophie,

My co-founder and I launched a B2B SaaS startup in Poland a few years ago and now want to expand in the US for market access since we have product market fit in a few countries in Europe.

We really need to be on the ground to interview our ideal users in the US. What visas will allow us to do that?

– Aiming for America

Dear Sophie,

Can you share details about premium processing for international student work permits?

— Psyched Student

Pitch Deck Teardown: Prelaunch.com’s $1.5M Seed Deck

Image credit: Prelaunch.com (opens in new window)

Earlier this week, Haje Jan Kamp’s Prelaunch.com interviewed Narek Vardanyan to get his perspective on how hardware startups can validate products before they go to market.

In a follow-up, he analyzed the pitch deck for Prelaunch.com’s $1.5 million seed round, which showed investors how the company monetizes its product forecasts: