As entrepreneurs, we often focus on how to prepare for a meeting with an investor by getting our business plan prepared and ensuring that financial documents are in order, and practicing the key details of our pitch deck. Interviewing investors is a two-way exchange. The questions you ask an investor will reveal a lot about their process and expectations for working with startups.
Standard Investor Questions
Investors want to know if you understand the basics of your business model and the way you view your company’s potential market. They’ll also be interested in knowing how you’re planning for growth, which metrics are important to you most and how you’ll add value to their investment. Your answers to these basic questions will establish the foundation for deeper discussion later in the interview.
Questions about Processes and Firms
It is crucial to conduct your research ahead of time to understand the investors you are meeting with and tech data security the investment process they follow. You can customize your approach so that it meets their needs, and increase the probability that they will invest in your business. Knowing the investors’ expectations for returns and typical timelines for deals can help you to align your goals with theirs. You will also gain insight into their approach to founders by understanding how they have faced turbulence in their portfolio companies.