How to Interview an Investor
The questions you ask an investor reveal as much about you and your business as the answers. Many entrepreneurs are focusing on getting the most appropriate answers from investors in order to ace investor meetings. But what do you think if the most important element of your interview was asking the appropriate questions?
It is essential to find the most suitable investors for your startup and at the appropriate stage of development. They can also provide valuable mentorship and connections that will help your company grow and continue to define its course.
In addition, to the typical questions regarding your business model including your the management team, financial projections, and others, you should be prepared to answer difficult questions regarding your business’s risks, challenges, and potential pitfalls. You should also be prepared to explain how you intend to conquer any challenges that might be encountered and how you’re committed to ensuring the success of your business.
Be prepared to discuss the conditions of any investment contract. In general, you’ll be negotiating with investors for the most favorable terms possible for your company. This will include the percentage of equity you’re willing to give up to fund your business and any other conditions you might need to meet for your investment (such as the commitment to raise additional funds, or a set timeframe for a return on investment).
You should be prepared to demonstrate your unique value proposition could yield a substantial profit for your investor. This is a fantastic opportunity to highlight the unique qualities of your company and show how they can impact the market.
