We are preparing for our first major sit-down with a team of investors this week. We’re ready to discuss our value prop, financials, growth plan, and team stories, but we also know there might be some out-of-the-box questions, and we want to be ready for those as well. What are some interesting, unexpected questions that investors have asked you?
Give me the #1 reason why I should NOT invest in your company? Put another way, what is the biggest HOLE in your idea/story/team/strategy. Every business has at least one Achilles heel - good investors will find it. Better if you find it first...
why do you think we are the suitable investors for you?
They are not trying to surprise you. The questions are not out of the box, but normal to find out the most about your business. Know your key metrics - and those of your competitors if possible. Know the usual SWOT comparisons for you and the competition. Know what the product/market fit is cold. Know what keeps people coming back to use your services continually. Know your cost per acquisition and the life time value of the user. Having all the answers is sometimes not a good thing. Be thoughtful about your business and, if they ask something you do not have an answer for, do not guess. Take notes and before the meeting ends, review the things they want more information about. You many not get to financials because if you do not know the business or they do not see sustainability in the model, the financials will not change that issue.
If the investment is also made for the passion of the project, and not only must they thought the investment itself.
What is the gurantee?