Sample interview questions: How do you assess the potential impact of technological obsolescence or disruption on the startups you invest in?
Sample answer:
Assessing Technological Obsolescence and Disruption
As a Venture Capitalist, I meticulously assess the potential impact of technological obsolescence and disruption on startups I consider investing in. Here’s how I approach this critical evaluation:
1. Market Analysis:
- Market size and growth potential: I examine the size and growth prospects of the target market to gauge its resilience to technological shifts.
- Competitive landscape: I analyze the competitive landscape, identifying potential threats and opportunities posed by emerging technologies.
- Barriers to entry: I assess the barriers to entry for new competitors, considering the potential for disruption by established players or startups.
2. Technology Assessment:
- Stage of maturity: I evaluate the maturity of the technology underlying the startup’s product or service, as more advanced technologies have a higher risk of obsolescence.
- Rate of innovation: I consider the pace of innovation in the relevant technological sector to determine the likelihood of disruptive technologies emerging.
- Proprietary technology: I assess the strength of the startup’s intellectual property and proprietary technology to determine its defensibility against competitors and technological shifts.
3. Management Team Assessment:
- Technical e… Read full answer