How to Interview an Investor
The questions you ask an investor reveal more about you and your business as the answers. Many entrepreneurs are focused on finding the most accurate answers to investors to ensure they are able to pass investor meetings. What if the most critical aspect of your interview is asking the right questions.
It is essential to find the best investors for your startup and at the appropriate stage of development. Apart from the money, they could provide mentorship and connections that will help you expand your business and set its trajectory for the years to come.
In addition to the usual questions about your business’s model, management team financial projections, other such things, you must be prepared to respond to tough questions regarding your company’s risks, challenges, and potential hazards. You must be prepared to describe your plan to overcome any difficulties and demonstrate how committed you are to the success of your business.
Be prepared to discuss the terms of any investment agreement. Generally, you will want to negotiate with investors for the best terms possible for your company. This will include the amount of equity you’re willing to sacrifice to fund your business and any other see post conditions you might have for your investment (such as a commitment to raise additional funds, or a specific timeframe for a return on investment).
You must also be prepared to discuss how your company’s unique value proposition can generate a substantial ROI for your investor. This is an excellent opportunity to highlight your company’s standout attributes and show how they can create a positive impact on the market.