The questions you ask an investor everything about your business and yourself as the answers. Many entrepreneurs focus solely on impressing investors by having the perfect answers. What if the most crucial part of your interview is asking the right questions.
It’s essential to find best investors for your startup and stage of development. Beyond the money, they are able to offer mentorship and connections that will help grow your company and shape its future direction for the future.
In addition to the typical questions regarding your business model, management team, financial projections, and others, you should be prepared to answer tough questions regarding your company’s risks and opportunities, as well as pitfalls. You should also be prepared to describe how you’ll overcome any challenges that might be encountered and how you’re committed to your business’s success.
Be prepared to discuss any investment agreement. Negotiate with investors to get the best possible terms for your business. This includes the percentage of equity you’re willing to surrender in exchange for funding as well as any other requirements you might need to meet for your investment (such as an agreement to raise follow-on funds or a specified timeframe to earn a profit).
It is also important to talk about how your company’s unique value proposition can generate significant returns for your investor. This is an excellent opportunity to highlight your company’s standout features and demonstrate how they will make a difference in the marketplace.
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