Entrepreneurs often concentrate on how they can prepare for a meeting. They prepare their business plan in order, make sure all financial documents are in order and practice the major elements of their pitch deck. But the interview with an investor needs to be a two-way How to interview an investor exchange. The questions you ask an investor give you an insight into their process and their expectations for working with startups.
Standard Investor Questions
Investors want to know how well you understand the basics of your business model and the way you view your company’s market opportunities. They’ll also be interested in knowing how you’re planning for growth, which metrics are important to you most and how you can increase the value of their investment. Your answers to these fundamental questions will establish the foundation for a deeper discussion later on in the interview.
Firm-Specific and Process Questions
It is essential to conduct your research prior to the time you meet to know about the investors you’re interacting with and their investment process. You can modify your approach to ensure it meets their needs, and increase the chance that they will invest in your startup. Knowing what investors‘ expectations are for returns and timelines for deals can help you match your goals to theirs. Knowing how they’ve managed turbulence within their portfolio companies could give you insights into how they interact with founders during challenging times.