As entrepreneurs, we often think about how to prepare for a meeting with an investor by having our business plan prepared and ensuring financial documents are in order, and preparing the essential elements of our pitch deck. However, the meeting with an investor needs to be a two-way exchange. The questions that you ask an investor reveal a lot about their process and expectations for working with startups.
Standard Investor Questions
Investors are interested in knowing how you are familiar with your business model, and how you perceive the market opportunity for your company. Investors want to understand how you plan to grow, what measures are most important to you, and how you intend to generate value from the investment. Answering these questions will allow you establish solid foundations for deeper discussion in the interview.
Process and Firm-Specific Questions
Conducting a thorough research on investors and their investment strategies before meeting them is important. This will allow you to tailor your strategy to meet their requirements and increase the chance of them making a positive decision about investing in your startup. Knowing what investors expect in terms of returns and typical timelines for deals will help you meet their objectives. Knowing how they’ve dealt with turbulence in their portfolio companies will provide insights into how they collaborate with founders in difficult times.