Seeking investment for your startup or company can be daunting. You need to convince potential investors that your business is worth putting their money into. During interviews, you’ll likely face tough questions about your business plan, financials, market viability and more. Here are some tips and example questions to help you prepare for pitching to investors.
Research the investor and tailor your pitch
Before the interview, learn about the investor’s areas of interest and past investments. This will allow you to tailor your pitch and business plan. For example, a VC firm focused on tech startups will have different criteria than an angel investor interested in local businesses. Go in with a compelling story about how your product or service solves a problem for customers. Use data, demos and case studies to showcase traction and potential.
Have detailed financial projections ready
Investors will want to see realistic financial projections before committing capital. Be ready to share your P&L statements, cash flow, burn rate, and funding requirements. Expect questions like: How much money are you seeking to raise now? What milestones will that amount achieve? What’s your runway with current capital? What additional funding will you need in the future? Having detailed financials signals you’ve done thorough planning.
Explain your go-to-market and growth strategy
Investors want to see you have a solid plan to acquire customers and expand. Be prepared to talk about your distribution channels, pricing, positioning, competitive landscape, and growth roadmap. Example questions include: Who is your target customer and how will you reach them? How do you plan to scale customer acquisition? Who are your main competitors and how are you differentiated? What are the unit economics? Your growth strategy answers will be key for investors.
Highlight your team and leadership capabilities
A startup’s team can make or break its success. Be ready to demonstrate why you and your team have the skills and experience to execute on the business plan. Expect questions like: What are your backgrounds and credentials? What are your roles and responsibilities? Do you have experience in this industry? Why are you equipped to lead this company? Convey your team’s passion and capabilities to instill confidence.
Preparing detailed financials, business plan and growth strategy will demonstrate your readiness and vision. Tailor your pitch to the investor’s interests and have compelling answers that highlight your team’s abilities. With practice and preparation, you can convey why your company is worth investing in.