As entrepreneurs, we frequently think about how we can prepare for a meeting with an investor: getting the business plan prepared, making sure financial documents are in order, and preparing the essential elements of our pitch deck. However, the meeting with an investor should be a two-way exchange. The questions you ask an investor give you an insight into their process and their expectations when working with startups.
Standard Investor Questions
Investors are interested in how you know your business model and how you perceive the opportunities for your business. Investors will also want know how you intend to expand, what metrics are most important to you, and how you intend to generate value from click reference the investment. Your answers to these simple questions will set the stage for a deeper discussion later in the interview.
Process and firm-specific questions
It is essential to conduct your research ahead of time to know about the investors you’re working with and their investment processes. You can adapt your approach so that it meets their needs and increase the likelihood that they will invest in your business. Knowing what investors look for in terms of return and the typical timeframes for deals will help you meet their goals. Knowing how they’ve dealt with turbulence in their portfolio companies can provide insights into how they collaborate with founders in difficult times.
