LIST OF QUESTIONS AN INVESTOR WOULD ASK AN ENTREPRENEUR

How much capital do you require?

They want to know how much of their capital will be needed to start, run and make the business profitable. They will also want to know how these investment funds will be utilized, and if additional rounds of capital will be required.

Who are your competition?

This is also a highly asked question from investors. Every business has some form of competition. Discuss the competitors in your industry, how their product/service is similar to yours, and how your product is better or more usable than that of the competition. Present the SWOT analysis.

Entry Barrier?

Investors are not keen in any venture which has low entry barrier which implies that this business model can be replicated easily. So as an entrepreneur you should be in full command to highlight why your business model cannot be easily replicated. Investors are keen to know if you can have patent protection.

What is the current state of the venture?

Investors are keen to know the current state of your venture to understand the progress of the venture and also where funds will be utilized. Investors want to see that you have something tangible to offer rather than just a good business plan or business concept. Prior to raising venture capital, you should try to move the business along as far as possible.

Do you currently have paying customers?

Paying customers definitely brings credibility to your product since Investors perceive it as a validation for the product and would like to talk to your customer to understand their viewpoint about the product.

Founding Team Experience? 

Investors look for dynamic and extra ordinary founders to back them, a great leader can develop a very good business from an ordinary idea. They will want to know if you have the proper educational background, experience, and contacts within your field to make your venture successful and profitable.

How will Investors Exit? 

Investors would like to see a hefty return of their investment. They would like to exit the venture either by company’s IPO or strategic sale of their equity to a large company or a PE firm.