Potential Questions that Investors May Ask

Prepping for Investors' Most Common Questions

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Potential Questions that Investors May Ask
Prepping for Investors' Most Common Questions

We've put together a list of questions investors might ask you. Whether you're new to this or you've been around the block, these questions will help you get ready for those important chats.

We're here to help you get your head around what investors are thinking and how to show them what's great about your business.

Let's get into it and help you get ready for your next big meeting.

Business Background and Team Dynamics

  1. Could you share how and when you first started your business?

  2. How did you and your co-founders meet and start working together?

  3. What relevant experience or expertise does the team have in the industry?

  4. Are there any key team members you're planning to bring on soon?

  5. Why do you believe your team is uniquely capable of executing the company's plans?

Company Structure and Strategy

  1. Could you give an overview of the company's structure?

  2. Do you have any advisors or a board of directors?

  3. What changes have you made to your business plan or direction?

  4. What makes your company stand out from others in the industry?

  5. What is your company's purpose or "why"?

Financial Health and Funding

  1. How does the company generate revenue?

  2. Are there any other sources of revenue you're considering?

  3. What is your company's growth rate?

  4. Do you have any recurring revenue sources?

  5. How much funding are you currently seeking, and what are your plans for it?

Market Analysis and Strategy

  1. Who is the ideal customer?

  2. How large is the potential market for your business?

  3. What percentage of the market do you hope to capture, and over what period?

  4. What trends have you noticed in the industry?

  5. Where did you gather the market data used in your business plan?

Competitive Landscape

  1. Who are your main competitors in the market?

  2. What gives your company a competitive advantage?

  3. Are there any barriers to entry for new companies in the market?

  4. How do you compare to your competition in terms of price, reviews, and performance?

  5. Out of your competitors, which one is performing the best, and why?

Product and Service Insights

  1. Could you tell us about any key milestones in your product's development?

  2. What have you learned from previous versions of your product or service?

  3. Are there any key features currently missing from your product?

  4. How do your product features differ from those of your competitors?

  5. Is it possible to have a demonstration of the product or service now?

Customer Interaction and Feedback

  1. Have you received any feedback from your customers?

  2. Have you received any press coverage?

  3. What is the best or worst review you have received?

  4. How many of your customers have left your company?

  5. Could you provide some numbers on your user base?

Operational Efficiency and Challenges

  1. What factors have slowed your company's growth?

  2. Are there any bottlenecks in your operations?

  3. Could you share some of your main assumptions?

  4. What are the biggest risks for your company at this time?

  5. Are there any key roles that need to be filled soon?

Financial Metrics and Investment Use

  1. How much do you spend on acquiring new customers?

  2. What is the average lifetime value of a customer for your company?

  3. What are the 3-5 key metrics you're focusing on currently?

  4. What is your company's monthly burn rate?

  5. How much debt and equity has your company raised?

  6. How do you plan to allocate the funds from this investment?

  7. What percentage of the funding will be used for founders' salaries versus expansion efforts?

  8. If you received more funding, what additional projects or initiatives would you pursue?

  9. Is a specific amount of funding already committed to your company?

Future Prospects and Growth

  1. When do you plan to raise the next round of funding?

  2. Could you share which milestones your company plans to achieve with the funding?

  3. How long do you have before you need to raise more funding?

  4. What is your company's pre-money valuation, and how did you determine it?

  5. Will previous investors participate in the current round of funding?

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