Entrepreneurs tend to focus on how they can prepare for a meeting. They have their business plan organized and ensure that all financial documents are in order and practice the most important elements of their pitch deck. But, the conversation with an investor needs to be a two-way process. The questions that you ask an investor will tell you a great deal about their procedure and expectations for working with startups.
Standard Investor Questions
Investors are interested in knowing how well you know your business model and how you see the potential market for your company. Investors will also want to find out how you plan to grow, what measures are most important to you, and how you intend to maximize the value of your investment. Answering these questions will allow you create a solid foundation for a more in-depth discussion during the interview.
Questions about Firms and Processes
It is important to conduct research ahead of time to learn about the investors you are meeting with and their investment process. You can customize your approach to ensure it is suited to their needs and increase the chance that they will invest in your startup. Knowing what investors’ expectations are board meeting productivity for returns and deal timeframes can help you to align your goals with theirs. You will also gain insight into the approach they take to founders by learning how they’ve faced turbulence in their portfolio companies.