As entrepreneurs, we frequently think about how we can prepare for the meeting with investors such as getting our business plan completed, making sure financial documents are in order and preparing the essential elements of our pitch deck. The process of 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 of working with startups.
Standard Questions for Investors
Investors want to know whether you understand the basics of your business model and how you perceive your company’s market opportunity. Investors also want to find out how you plan to grow, which metrics are most important to you and how you plan to generate value from the investment. Answering these questions will enable you establish solid foundations for deeper discussion in the interview.
Firm-Specific and Process Questions
It is important to conduct research prior to the time you meet to understand the investors you’re meeting with and the investment process they follow. You can adapt your approach to ensure it meets their needs, and increase the chances that they will invest in your business. Knowing what investors expect in terms of return and the typical timeframes for deals will help you stay in line with their objectives. Learning how they have dealt with turbulence in their portfolio companies can provide you with insights into how they collaborate with founders in difficult times.