As entrepreneurs, we often focus on how to prepare for an interview with investors such as getting our business plan ready and ensuring that the financial documents are in order and practicing the key details of our pitch deck. Interviewing an investor is a two-way conversation. The questions you ask an investor will provide you with a wealth of information about their process and expectations for working with startups.
Standard Investor Questions
Investors want to know if you understand the basics of your business model and the way you view your company’s market opportunities. They’ll also want to know what you’re planning to do to prepare for growth, which metrics are important to you most, and how you will create value for their investment. Your answers to these simple questions different M&A management programs will establish the foundation for a deeper discussion later in the interview.
Process and firm-specific questions
Conducting a thorough research on investors and their investment practices before meeting them is essential. You can modify your approach so that it meets their requirements, and increase the chances that they will be willing to invest in your startup. Knowing what investors are looking for in terms of returns and typical timeframes for deals will help you stay in line with their goals. Learning how they’ve faced turbulence with their portfolio companies can also provide insights into how they work with founders in tough times.