How to Interview an Investor

How to interview http://tech-data-room.net/top-5-questions-to-ask-an-investor/ an investor

If you’re applying to a venture capital firm it is essential to prepare for any questions they could inquire about your previous experiences. You must be ready to answer any questions regarding your experience in the industry and your previous deals (how you’ve added value). You must be prepared to answer general questions about investment for example, how you calculate a cap table or the key industry ratios and key metrics.

If you are planning a meeting with an investor, it’s important to keep in mind that investors are looking for individuals who have a genuine interest in early stage startups. Make sure you bring a lot of energy to the interview and focus on the things that get you fired up about seed-stage company activities. This will distinguish you from other candidates and show the interviewer that you’re a good fit for their company.

Additionally, it’s essential to be familiar with the industry-specific risks associated with investing in a startup, for example, the typical exit strategy for an angel or seed-stage investment, the different types of control mechanisms that investors have access to such as drag-along rights, veto rights and board composition rules. It is also essential to be aware of the typical timelines and steps involved in the process of closing a VC investment so that you can discuss how your experience fits into the timeframe.