As entrepreneurs, we frequently think about how we can prepare for a meeting with an investor by having our business plan in order and ensuring financial documents are in order and preparing the essential elements of our pitch deck. Interviewing an investor is a two-way conversation. The questions you ask an investor can give you an insight into 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 the market opportunities for your business. Investors want to understand how you plan to grow, what measures are most important to you and how you plan to generate value from the investment. Answering these questions will enable you build the foundation for a deeper discussion in the interview.
Firm-Specific and Process Questions
It’s next important to do your research prior to the time you meet to learn about the investors you’re interacting with and their investment process. You can tailor your approach so that it is suited to their needs and increase the probability that they will be willing to invest in your startup. Knowing what investors’ expectations are for returns and timelines for deals can help you align your goals with theirs. Learning how they’ve dealt with turbulence in their portfolio companies could provide insights on how they work with founders in difficult times.