As entrepreneurs, we often focus on how to prepare for a meeting with an investor by getting our business plan prepared and ensuring that the financial documents are in order and practicing the key details of our pitch deck. But the interview with an investor needs to be a two-way street. The questions you ask an investor give you an insight into their approach and expectations for working with startups.
Standard Investor Questions
Investors are interested in how you are tech data security familiar with your business model, and how you view the market opportunity for your company. Investors will also want to find out how you plan to grow, what metrics are most important to you, and how you intend to create value for your investment. Answering these questions will allow you to build a solid foundation for a deeper discussion in the interview.
Process and Firm-Specific Questions
It is essential to conduct your research prior to the time you meet to learn about the investors you are meeting with and the investment process they follow. You can modify your approach so that it meets their needs and increase the probability that they will invest in your business. Knowing what investors are looking for in terms of returns and the typical timelines for deals will help you to align your approach with the goals of investors. Knowing how they’ve dealt with turbulence in their portfolio companies will provide insight into how they collaborate with founders in difficult times.