Entrepreneurs often focus on how they can prepare for a meeting. They get their business plan in order, make sure all financial documents are in order and practice the most important elements of their pitch deck. The process of interviewing an investor is a two-way exchange. The questions you ask an investor will give you a good idea about their procedure and expectations for working with startups.
Standard Investor Questions
Investors are interested in how well you know your business model, and what you think of as a market opportunity for your company. They’ll also be next interested in knowing what you’re planning to do to prepare for growth, which metrics are important to you most and how you’ll add value to their investment. Your answers to these fundamental questions will establish the foundation for a deeper discussion later during the interview.
Questions about Firms and Processes
Doing your research about the investors and their investment processes before you meet them is essential. You can adapt your approach so that it meets their needs and increase the chances that they will invest in your business. Knowing what investors want in terms of return and the typical timelines for deals will help you stay in line with their goals. Knowing how they’ve faced turbulence with their portfolio companies can also give you insights into how they interact with founders during difficult times.
