How to Interview an Investor
The questions you ask an investor reveal exactly the same thing about your company and you as the answers. Many entrepreneurs focus on impressing investors by having the perfect answers. But what do you think if the most important element of your interview was asking right questions?
It is crucial to find the appropriate investors for your startup and stage of development. They will also offer valuable guidance and connections that will aid your business in its growth and determine its direction.
You should be ready to answer questions about the risks and pitfalls, as well as challenges of your business. You must be prepared to describe how you plan to overcome obstacles and show how you are committed to the success of your business.
Also, be prepared to discuss the conditions of any investment agreement. Talk to investors to negotiate the best possible terms 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 may have in exchange for the investment (such as the commitment to raise follow-on funds or a specific timeframe for a return on investment).
You must also be prepared to discuss how your organization’s unique value proposition will generate an impressive ROI for your investor. This is a fantastic opportunity to highlight the unique aspects of your business and explain how they can influence the market.