How to Interview an Investor

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How do you interview an investor?

It is important to be prepared for any questions venture capitalists might inquire about your previous experience. In particular, you should be prepared to answer questions about your deal experience (how you contributed value to the deals you worked on) and your knowledge of the industry. You should be ready to answer questions regarding general investment questions for example, how you calculate a cap-table or key industry ratios and key metrics.

When preparing for a meeting with an investor, it’s crucial to remember that investors are looking for individuals who are interested in early stage startups. Bring lots of enthusiasm to the interview, and focus on what gets you excited about seed-stage companies. This will distinguish you from other applicants and demonstrate to the interviewer that you’re an ideal fit for their business.

It is also essential to be familiar with the particular risks involved in investing in a startup like the typical exit strategy for an angel or seed-stage investment, the various control mechanisms available to investors such as veto rights, drag-along rights, and board composition rules. It’s important to know the typical closing dates for the VC deal to be able to describe the way your experience fits into.

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