How to Interview an Investor

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How to interview an investor

It is essential to be prepared for any questions that venture capitalists might ask you about your past experience. Specifically, you should prepare to answer questions regarding your deal experience (how you added value to the deals you worked on) and your knowledge of the industry. You should also be prepared to answer general questions related to investments, like how you’d calculate a cap table, or the most important metrics and ratios of an industry, as well as specific VC questions on market sizing and guestimates.

The most important thing to remember when making preparations for an interview with an investor is that they are looking for someone who has a genuine interest in early stage startups. Make sure you bring lots of energy to the interview and keep your focus on the things that get you fired up about seed-stage company activities. This will help you stand out from other applicants and prove to the interviewer you’re a good fit for their business.

In addition, it’s important to be aware of the particular risks involved in investing in a startup, such as the typical exit strategy for an angel or seed-stage investment, as well as the different control mechanisms available to investors including veto rights, drag-along rights and board composition guidelines. It is essential to understand the typical closing dates for a VC deal so you can explain how your experience fits in.