As entrepreneurs, we often think about how to prepare for an interview with an investor by having our business plan in order and ensuring that the financial documents are in order, and preparing the most important elements of our pitch deck. But, the conversation with an investor needs to be a two-way exchange. The questions you ask an investor can give you an insight into their process and Board Document Management their expectations when working with startups.
Standard Questions for Investors
Investors want to know how well you are aware of the fundamentals of your business model and the way you view the market opportunities for your business. They’ll also be interested in knowing how you plan for growth, which metrics are most important to you, and how you will increase the value of their investment. Answering these questions will allow you establish solid foundations for deeper discussion in the interview.
Process and firm-specific questions
It’s important to do your research prior to the time you meet to find out about the investors you’re interacting with as well as their investment process. You can customize your approach so that it meets their needs and increase the probability that they will be willing to invest in your startup. Knowing what investors look for in terms of returns and the typical timelines for deals can help you align with their objectives. You will also gain insight into the way they approach founders by understanding how they have handled turbulence within their portfolio companies.