Entrepreneurs often concentrate on how they can prepare for an investor meeting. They prepare their business plan in order tech-data-room and ensure that all financial documents are in place and practice the major points of their pitch deck. Interviewing an investor is a two-way process. The questions that you ask an investor will provide you with a wealth of information about their process and expectations for working with startups.
Standard Investor Questions
Investors want to know how well you know the fundamentals of your business model and the way you view your company’s market opportunity. Investors want to find out how you plan to grow, what measures are most important to you and how you plan to create value for your investment. Answering these questions can help you create solid foundations for more in-depth discussion during the interview.
Process and firm-specific questions
It is essential to conduct your research ahead of time to understand the investors you’re working with and the investment process they follow. This will help you customize your strategy to meet their needs and increase the probability of them making a good decision about investing in your business. Knowing what investors want in terms of returns and typical timeframes for deals will help you meet their goals. Learning how they have faced turbulence with their portfolio companies could provide insights on how they work with founders during difficult times.