How to interview an investor
If you’re applying to a venture capitalist it is important to prepare for any questions they could inquire about your prior experience. You should be ready to answer any questions regarding your experiences in the industry and your previous deals (how you added value). You should be prepared to respond to general investment-related questions like how tech-data-room to calculate a cap table or the primary metrics and ratios of an industry as well as specific VC concerns regarding market size and guestimates.
If you are planning a meeting with an investor, it is important to remember that investors are looking for people with a genuine passion in early stage startups. Make sure you bring a lot of energy to the interview and focus on the things that make you excited about the seed stage company activities. This will distinguish you from other applicants and prove to the interviewer that you’re a good fit for their business.
It is also crucial to be aware of the risks specific to the industry when investing in a startup. For instance you must be aware of the typical exit strategy for an angel investment or seed investment, and the different control mechanisms that investors can use, such as veto and drag-along rights. It’s crucial to know the typical deadlines for closing a VC deal, so that you can explain how your experience fits into.