As entrepreneurs, we frequently think about how we can 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. However, a meeting with an investor needs to be a two-way conversation. The questions you ask an investor can tell you a lot about their process and their expectations when working with startups.
Standard Investor Questions
Investors are interested in knowing how you know your business model, and how you view the market opportunities your company has. Investors will also want learn how you plan to expand, what metrics are most important to you and how you plan to maximize the value of your investment. Your answers to these basic questions will establish the foundation for further discussion later in the interview.
Firm-Specific and Process Questions
It is essential to conduct your research prior to the time you meet to find out about the investors you’re interacting with and the investment process they follow. You can modify your approach to ensure it is suited to their needs and increase the chances that they will be willing to invest in your startup. Knowing what investors look for in terms of returns as well as the typical timeframes for deals will help you meet their goals. You can also gain an understanding of their approach to founders by learning how they have overcome turbulence within their portfolio companies.