As entrepreneurs, we often think about how we can prepare for an interview with an investor: getting the business plan prepared and ensuring that financial documents are in order and preparing the most important elements of our pitch deck. However, a meeting with an investor should be a two-way conversation. The questions you ask an investor will provide you with a wealth of information about their process and expectations for working with startups.
Standard Investor Questions
Investors are interested in how you know your business model, as well as what you think of as a potential market for your company. Investors also want to understand how you plan to grow, what metrics are most important to you and how you plan to create value for the investment. Answering these questions can help you to build solid foundations for deeper discussion in the interview.
Questions about Processes and Firms
It’s important to do your research ahead of time to understand the investors you are meeting with as well as their investment process. You can adapt your approach so that it meets their needs and increase the chances that they will invest in your business. Knowing the investors’ expectations for returns and their typical deal timeframes can help you match your goals to theirs. You will also gain insight into the approach they take to founders by understanding how they have faced turbulence in their portfolio companies.
http://tech-data-room.net/virtual-data-room-software-and-data-security/