How do you interview a potential investor
It’s important to be prepared for any questions an investor from a venture capitalist might inquire about your previous experience. Particularly, you need to prepare to answer questions regarding your experience in the field (how you contributed value to the deals you worked on) and your industry expertise. You should be prepared to answer general questions related to investments, like how you’d calculate a cap table or the key metrics and ratios of an industry and, in addition, specific VC concerns regarding market size and guestimates.
When you are preparing to meet with an investor, it’s important to remember that investors are looking for people who have a genuine interest for startups at an early stage. Be sure to bring a lot of energy to the interview and concentrate on the aspects that get you excited about seed-stage company activities. That will set you apart from other applicants and show the interviewer that your skills are a perfect match for their company.
It’s also important to comprehend the risks that are specific to the business sector when investing in a startup. For example it is important to be aware of the standard exit strategy for an angel investment or seed investment, as well as the different control mechanisms that investors have at their How to interview an investor disposal, such as drag-along and veto rights. It’s important to know the typical timeframes for closing a VC deal in order to explain how your experience fits in.
