Savvy investors know a good bet when they see it. To determine if your company is ready for investment, they may ask you tough questions.
These slides will help better prepare you for the toughest inquisitions
2. Investors are a different
breed of business people.
Equipped with deep funds
and intuition, they make the
riskiest decisions to help
If you can think like an
investor, you are ready to
negotiate with one.
3. Savvy investors know a good
bet when they see it. To
determine if your company is
ready for investment, they may
ask you tough questions
It’s your job to be
These slides will help better
prepare you for the toughest
6. What is your weak spot?
Before your VC meetings, make sure to become experts at answering
these “gotcha” questions.
Stick to the truth. Savvy investors
understand that every company has a
weakness at every stage, and will poke until
they find a hole.
7. Why should we invest?
You have to be a domain expert to
determine whether your company is
worth investing in.
You need to convince investors to believe in you.
8. Why hasn’t this worked
Understand why competitors have failed
in the past. And then use that analysis to
evaluate how you will succeed.
9. What do we need to know about
Use data and numbers so that it sticks in your investors’
heads. Pick four or five numbers that are specific to your
Ex: We have grown
revenues 140% in
the last two years.
We have also
helped over 1,500
10. What is your
It is important to have a
If the price isn’t set, then investors may
push you to a price. Avoid doing so.
11. Prove that your company is a good bet for investors. This means
that your total addressable market (TAM) needs to be big.
Show how much of that is the serviceable available market (SAM)
and finish with the serviceable obtainable market (SOM).
How big is your market?
12. This is not a fit for us. Would
you like an introduction to
[blank] VC firm?
This may seem like a good route. But
most likely, it is a dead end. If an investor
passes on your offer, they will tell other
investors why they did.
Politely accept and move forward with the
introduction. Just be wary that it may not
lead to a productive outcome.
13. Why haven’t
Do not approach VCs until
you have achieved
traction. Venture capital
should be looked at as an
accelerator for existing
success, not a runway
extender to get it right.
14. How much are you raising?
Underestimate how much you want. If you’d like to raise $5 million,
start by asking for $2 million.