Entrepreneurs often think about how they can prepare for an investor meeting. They get their business plan in 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 should be a two-way exchange. The questions that you ask an investor tell you a great deal about their process and expectations of working with startups.
Standard Questions for Investors
Investors are interested in knowing how you know your business model, and how you see the market opportunities your company has. They’ll tech-data-room.net/virtual-data-room-software-and-data-security also want to know how you are planning for growth, which metrics are most important to you, and how you will create value for their investment. Your answers to these simple questions will establish the foundation for deeper discussion later during the interview.
Questions about Processes and Firms
It is essential to conduct your research prior to the time you meet to understand the investors you’re working with and their investment processes. This will allow you to tailor your approach to their needs and increase the chances of them making a positive choice to invest in your startup. Knowing what investors’ expectations are for returns and typical timelines for deals can help you to align your goals with theirs. You will also gain insight into the founders’ approach by learning how they have dealt with turbulence within their portfolio companies.