How to Interview an Investor

How to interview a prospective investor

It is important to be prepared for any questions venture capitalists may ask you about your past experiences. You must be prepared to answer questions about your experience in the field and your previous deals (how you were able to add value). You must be prepared to answer questions about general investment questions for example, how to calculate a cap-table, or the key metrics and industry ratios.

When you are preparing to meet with an investor, it’s crucial to remember that investors are looking for people who are interested in early stage startups. Be sure to bring a lot energy to the interview and keep your focus on the things that make you excited about seed-stage company activities. This will allow you to stand out from other candidates, and show the interviewer you’re a good fit for their business.

In addition, it’s important to be familiar with the specific risks of investing in a startup, for example, the typical exit strategy for a seed or Financial Transactions angel investment, the different types of control mechanisms available to investors such as drag-along rights, veto rights, and board composition rules. It’s essential to know the typical timeframes for closing the VC deal, so that you can explain how your experience is a part of.