How to Interview an Investor

As entrepreneurs, we frequently think about how we can prepare for an interview with investors by getting our business plan in order and ensuring that financial documents are in order, and practicing the key details of our pitch deck. However, the meeting with an investor should be a two-way street. The questions you ask an investor give you an insight into their process and their expectations when working with startups.

Standard Investor Questions

Investors want to know if you understand the basics of your business model and the way you view your company’s market opportunity. They’ll also want to know how you’re planning for growth, what metrics are important to you most, and how you will add value to their investment. Answering these questions will allow you build a solid foundation for a deeper discussion in the interview.

Firm-Specific and Process Questions

It is crucial to conduct your research ahead of time to understand the investors you are meeting with as well as their investment process. This will help you tailor your Financial Transactions strategy to meet their requirements and increase the likelihood of they making a positive decision to invest in your startup. Knowing what investors expect in terms of returns as well as the typical timeframes for deals will help you to align your approach with their goals. You will also gain insight into their approach to founders by learning how they’ve faced turbulence in their portfolio companies.