Minimum Viable Product · Seed funding

Do VCs expect a solid software architecture in Minimal Viable Product too?

Vikas Aggrwal Entrepreneur, Product Developer, System Analyst, Java Technical Architect-Looking For Opportunities

March 22nd, 2019

Pitch for VC funding or Seed rounds require various things such as pitch deck complete with problem, solution, market segment analysis, team, revenue, roadmap , competition etc. I rarely have seen any one discussing software architecture of their initial version (MVP). Do VC ask for it?

Jim Michael Co-Founder and Chief Operating Officer, Energine Inc.

March 26th, 2019

The risk here is that the poor architecture decisions make their way into the product. This can result from pressure to get the next iteration out the door, particularly when the funding situation is less than ideal. These mistakes become very expensive to correct down the road. Besides, good architectural decisions lead to faster implementations through abstraction. You actually save money.

Parvez Husein Co-founder and CTO @ Portable Office Company. Exited.

March 23rd, 2019

When you say VC, I'm interpreting that to mean angel or early stage VC. That being the case, then in the early stages of decided to move forward they won't ask. Maybe out of curiosity, but certainly not in any depth. Once they've decided that they want to invest and begin their due diligence process, they definitely will. Included in that conversation will be your current thoughts on scale.

Pedro Sostre Marketing Pro. CEO @ WebLift. Founder @ Black Helmet (acquired). Author, Web Analytics @forDummies

March 23rd, 2019

Generally, no. An MVP is meant to be a test. A throwaway product that you put minimal effort into. The software architecture should just be whatever was the easiest and cheapest that would lead to an effective test (hence the term minimum).

They may ask what you plan to use for the final product if the MVP works out.

In fact, if it looks like you’ve gone overboard on the build out of the MVP, it may look like you don‘t understand the startup process and actually create some negative perceptions.

This is a pretty good article on my point:

Lastly, all VCs are different so learn everything you can about who you’re sitting down with so you can be best prepared for what they might ask.

Arun Maskey CEO - [Technology has always been in my vein]

March 24th, 2019

They don't. But it's very important to show you are backed up with such architecture that supports these many users. Ultimately users converts into money, so they will like it.

Jens Straten Entrepreneur with German Ingenuity

March 24th, 2019

Initially, they probably won't ask for it directly, but they might ask about scalability which would require you to have a solid software architecture in my opinion.

It will also come up if they are interested and go through a process of due diligence with you.

My advise is: Have a reasonable software architecture in place from day one. It will save you time and energy in the long run and you don't have to worry about upsetting that one great investor just because you didn't have anything in place.

Elijah A.Lucas Founder of A Conglomerate Tech-Start Up,

Last updated on March 22nd, 2019

What's a great market analysis tool to create that part of my pitch deck? What other parts are need? @vikas

Vikas Aggrwal Entrepreneur, Product Developer, System Analyst, Java Technical Architect-Looking For Opportunities

March 24th, 2019

@Elijah, sources of data are google and research reports from companies like EY, BusinessInsider and Gartner. I have used reports from various sources too in the past. However we must manually analyse all these to make a sense out of it.

Richard Gaas Hacker & Product Manager

Last updated on March 24th, 2019

No. They're just interested in seeing if you have customers and if your customers keep coming back