How to Interview an Investor

As entrepreneurs, we frequently focus on how to prepare for an interview with investors by having our business plan completed and ensuring financial documents are in order, and practicing the key details of our pitch deck. The process of interviewing an investor is a two-way exchange. The questions you ask an investor tell you a lot about their approach and expectations when working with startups.

Standard Investor Questions

Investors are interested in knowing how well you know your business model, as well as how you view the market opportunities your company has. Investors will also want to understand how you plan to grow, which metrics are most important to you and how you plan to create value for the investment. Your answers to these fundamental questions will establish the foundation for further discussion later during the interview.

Firm-Specific and Process Questions

It is essential to conduct your research prior to the time you meet to find out about the investors you’re interacting with and the investment process they follow. You can adapt your approach to ensure it meets their needs, and increase the likelihood that they will be willing to invest in your startup. Knowing what investors look for in terms of returns and typical timelines for deals can help you align with their objectives. You can also gain a better understanding of the founders’ approach by learning Financial Transactions how they have dealt with turbulence within their portfolio companies.