Top 11 questions investors will ask you

When presenting your startup to prospective investors, it is essential to predict the particular enquiries they are likely to ask. Armed with well-considered and compelling answers, you can enhance your likelihood of obtaining financing. This guide aims to explore the 11 most common questions that investors often ask to early-stage startups and offer valuable advice on how to solve them successfully.

I've spoken to 100s of early stage investors (Angel & VCs) here's what they always ask me...

1) Tell me your founding story…

(deliver this with passion & energy every single time)

2) Why are you working on this problem?

(tell them why this mission excites you, the potential scale of the business & size of the opportunity)

3) Why do customers use your product?

(testimonials & user stories are great to bring in here)

4) What makes the product sticky?

(a chance to show off your metrics & cohort analysis)

5) What's the biggest risk to the business?

(never say nothing, come ready to talk about 1 -2 risks)

6) What's your go to market strategy?

(tell them how you've reached your customers & plans for getting to more)

7) What's your path to monetisation?

(demonstrate that you've thought about a viable revenue strategy)

8) What would you do if your revenue model doesn't work?

(show that you have other options to consider)

9) What's your moat?

(deliver this with passion & energy every single time)

‍10) Who are your competitors?

(don't say there's no-one else, instead articulate your secret sauce)

11) What are you doing with the funding?

(know how much runway this gives you, what roles you're hiring for & when / if you will need to raise again)

A successful investor pitch is more than just a Q&A session; it's an opportunity to showcase your startup's potential and build a lasting relationship with potential investors. By thoughtfully crafting your responses and demonstrating a deep understanding of your business, you can effectively convey your vision, address concerns, and inspire confidence in your startup's future. By preparing for these essential questions and delivering your responses with conviction, you'll increase your chances of securing the funding you need to take your startup to the next level.

Originally published on LinkedIn

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