How to Interview an Investor
Entrepreneurs often concentrate on how they can prepare for a meeting. They prepare their business plan organized and ensure that all financial documents are in place and practice the major points of their pitch deck. But, the conversation with an investor needs to be a two-way exchange. The questions you ask an investor will tell you a great deal about their approach and expectations when working with startups.
Standard Investor Questions
Investors want to know how well you understand the basics of your business model and how you perceive your company’s market opportunity. Investors will also want to know how you intend to grow, what metrics are most important to you, and how you intend to maximize the value of your investment. Your answers to these basic questions will serve as a basis for further discussion site about How Can Data Rooms Elevate Security in Financial Transactions later in the interview.
Process and firm-specific questions
It’s important to do your research ahead of time to understand the investors you are meeting with as well as their investment process. This will help you customize your approach to their needs and increase the chance of them making a good decision about investing in your business. Knowing what investors expect in terms of returns and the typical timelines for deals will help you meet their goals. Understanding how they’ve faced turbulence with their portfolio companies will provide insight on how they work with founders in difficult times.