The questions you ask an investor say exactly the same thing about your company and you as the answers. Many entrepreneurs are focused on impressing investors by providing the correct answers. What if the most important part of your interview asking the right questions.
It’s essential to find most suitable investors for your startup and at the appropriate stage of development. Besides the money, they will offer mentorship and connections that can help you expand your business and set its future direction in the years to come.
You should be able to answer questions about the risks, challenges and potential pitfalls of your business. You should also be ready to discuss how you intend to conquer any obstacles that may be encountered and how you’re committed to the success of your company.
Finally, be prepared to discuss the terms of any investment agreement. Discuss with investors in order to negotiate the most favorable terms possible for your business. This will include the percentage of equity you’re willing to give up in exchange for funding, and any other requirements that you might need to meet for your investment (such as the commitment to raise follow-on funds or a time-frame for a return on investment).
You should also be ready to talk about how your company’s unique value proposition can generate significant returns for your investor. This is a fantastic opportunity to highlight the unique features of your business and demonstrate how they affect the market.
