more-arw search

Q&A Forum

At what stage (and what deliverables) would a VC/investorvalue the services of a market researcher for the purpose of validating investment?


Topic Expert
Kent Thomas
Title: Founder
Company: Advanced CFO Solutions
(Founder, Advanced CFO Solutions) |

I assume that you are referring to a professional market research firm that would validate your target market, correct? If so, to the extent you can get credible, independent validation of your target market, it will help with the credibility of your business plan. However, since you will want to focus on the 'addressable market' (how much of the total market really applies to your products and services) and, most importantly, whether or not real customers will actually buy your products/services, I would not spend a lot of money on an expensive research firm but I would get professional advice and help to make sure that you have good data. If you are at the stage to get serious VC interest, they will do a good deal of due diligence and research on the market segment(s) that you identify to make sure that you are right. Remember that the best validation is contracts with and sales to strategic partners and customers.


Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email [email protected] to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.