The questions you ask an investor reveal your personality and your business as the answers. Many entrepreneurs focus solely on making it through investor meetings having the right answers. What if the most critical part of your interview asking the appropriate questions.
Finding the right investors is vital for your startup. Apart from the money, they are able to provide mentorship and connections that will allow you to expand your business and set its trajectory for years to come.
In addition, to the typical questions about your business model and the management team, financial projections, and other such things, you must be prepared to answer tough questions regarding your business’s risks or challenges and the potential dangers. You must be prepared to describe how you plan next to overcome obstacles and show how committed you are to the success of your business.
Be prepared to discuss any investment contract. Negotiate with investors to get the best terms for your business. This includes the percentage of equity you are willing to forfeit in exchange for funding and any other requirements that you may have for your investment (such as the obligation to raise additional funds, or a specific timeframe to earn a profit).
You should also be prepared to talk about how your company’s unique value proposition can result in an enormous ROI for your investor. This is a fantastic opportunity to highlight the unique features of your business and to demonstrate how they influence the market.
