How to Interview an Investor

Entrepreneurs often focus on how they can prepare for a meeting. They put their business plan in tech-data-room order and ensure that all financial documents are in place and practice the main elements of their pitch deck. However, the meeting with an investor needs to be a two-way street. The questions that you ask an investor will provide you with a wealth of information about their procedure and expectations for working with startups.

Standard Questions for Investors

Investors are interested in knowing how well you know your business model, as well as how you view the potential market for your company. Investors will also want learn how you plan to grow, what measures are most important to you, and how you intend to create value for the investment. Your answers to these simple questions will serve as a basis for deeper discussion later during the interview.

Questions about Processes and Firms

It is crucial to conduct your research ahead of time to understand the investors you’re working with and their investment processes. This will allow you to tailor your strategy to meet their needs and increase the likelihood of them making a good decision about investing in your startup. Knowing what investors want in terms of return and the typical timelines for deals will help you to align your approach with the goals of investors. You can also gain an understanding of the way they approach founders by learning how they’ve handled turbulence within their portfolio companies.