Entrepreneurs often concentrate on how they can prepare for a meeting. They have their business plan organized and ensure that all financial documents are in order and practice the most important elements of their pitch deck. However, the meeting with an investor needs to be a two-way street. The questions that you ask an investor will tell you a great deal about their process and expectations for working with startups.
Standard Investor Questions
Investors want to know whether you understand the basics of your business model and how you perceive your company’s potential market. They’ll also be interested in knowing how you plan for growth, what factors are important to you the most, and how you will bring value to their investment. Answering these questions will help you establish solid foundations for more in-depth discussion during the interview.
Questions about Processes and Firms
It is crucial to conduct your research prior to the time you meet to find out about the investors you’re working with as well as their investment process. This will help you customize your strategy to meet their needs and increase the chance of them making a positive choice about investing in your business. Knowing what investors are looking for in terms of returns and the typical timeframes for deals can help you align with the goals of investors. Knowing how they’ve dealt with turbulence in their portfolio companies will provide insight on how they work with founders during challenging times.
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