How to Interview an Investor

Entrepreneurs tend to focus on how they can prepare for an investor meeting. They put their business plan in order, make sure all financial documents are in order and practice the most important elements of their pitch deck. Interviewing an investor is a two-way exchange. The questions you ask an investor can provide you with a good idea of their approach and expectations when working with startups.

Standard Investor Questions

Investors want to know if you understand the basics of your business model and what you see as your company’s potential market. Investors will also want learn how you plan to grow, what measures are most important to you and how you plan to generate value from the investment. Your answers to these simple questions will establish the foundation for a deeper discussion later in the interview.

Questions about Processes and Firms

Conducting a thorough research on investors and their investment practices before you meet with them is essential. This can help you tailor your approach to meet their needs and increase the chance of them making a good decision about investing in your business. Knowing what investors are looking for in terms of return and the typical timelines for deals can help you align with their goals. You can also gain an understanding of the approach they take to next founders by learning how they have faced turbulence in their portfolio companies.

John Avery

POSTED BY John Avery
16th July 2024