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MemberJuly 23, 2021 at 10:15 am248Level 1
Let’s discuss the key questions which investors will ask before making an investment in your startup.
P.s. Those who know how to answer these questions, please share your views too.✌
MemberJuly 23, 2021 at 10:43 am124Level 1
@Ansh Many investors consider the team behind your startup more important than your product or service. So, the first question they may ask is, “Is there a great management team?”
You should be well aware of your team skillset, experience, etc. Some of the questions can be:
- Who are the founders and key team members?
- What relevant domain exp. does the team has?
- What key additions to the team are needed in the short term?
- How do you plan to scale the team in the next 12 months?
MemberJuly 23, 2021 at 11:22 am49Level 1
VC’s generally focus on the business which are scalable. They may ask questions like
“Is the market opportunity big?”
Don’t present any small ideas. If your first product or service is small, then perhaps you need to represent the company as a “platform” business, allowing the creation of multiple products or apps. Investors needs to know the actual addressable market and what percentage of the market you plan to capture over a certain period of time.
MemberAugust 17, 2021 at 11:21 am330Level 1
Investors are keen to know their “level of involvement” in the companies day-today businesses.
An angel investor is granted an equity stake in the company which means they have the freedom to participate in decision-making, alongside the startup’s leadership. On the other hand, an investor who funds a startup’s crowdfunding campaign would also receive an equity share but they wouldn’t have the control unlike angel investors. Ultimately, it’s important to be clear on how much or how little involvement you’d like when handing money over to a startup.