The questions you ask an investor the same about your company and you as the answers. Many entrepreneurs are focused on making it through investor meetings providing the correct answers. But what would happen if the most crucial part of your interview was asking the appropriate questions?
It’s crucial to find the most suitable investors for your startup, and the stage of development. They can also provide you with valuable mentorship and connections that will help your company grow and continue to determine its direction.
In addition to the typical questions about your business model including your the management team financial projections, other such things, you must be prepared to answer tough questions regarding your company’s risks and challenges as well as potential pitfalls. You must be prepared to describe your plan to overcome any challenges and how committed you are to the success of your business.
Be prepared to discuss the conditions of any investment agreement. Negotiate with investors to get the best possible terms for your business. This will include the percentage of equity you are willing to sacrifice in exchange for funding as well as any other requirements that you may have in exchange for the investment (such as a commitment to raise additional funds or a set timeframe to earn a profit).
You should also be prepared to discuss how your company’s unique value proposition will create an enormous ROI for your investor. This could be a fantastic opportunity to highlight your company’s standout features and demonstrate how they will contribute to the market.