The 7 Magical Questions of Investment Meetings

“ The consequences of our actions are always so complicated, so diverse, that predicting the future is a very difficult business indeed.” - Albus Dumbledore ― J.K. Rowling, Harry Potter and the Prisoner of Azkaban

I love the Harry Potter series because, just like the magical stories, I also explore secrets and questions in investment meetings. In these meetings, I delve into the entrepreneurs' thoughts and try to ask 7 magical questions to discover the secret of a successful startup as if I were in a magical world.

1. Who specifically is the initial customer?

This question helps me understand a startup's initial target audience and the problem they are solving, as well as the potential market size. Identifying the right target customer is vital for success and plays a significant role in defining a product or service's market scope. The response offers insights into the product's potential, entrepreneurs' understanding of market dynamics, and how they identify opportunities in the target market.

2. How do you know this problem exists?

I ask this question to understand the entrepreneurs' awareness of the problem they're facing and its importance. This helps me learn about the data, experience, or research behind their product development.

This question enables me to assess how well the entrepreneur grasps the issue and their target market. If they can't prove a specific problem exists and that customers need a solution, it may indicate insufficient knowledge about the market.

Furthermore, this assesses the entrepreneur's research and analysis to validate the problem. A data-based problem definition highlights the reliability of their business plan and solution.

3. How do you plan to reach your customers?

This question helps me understand the entrepreneur's customer acquisition strategy and marketing methods, which are crucial for the venture's success. Through the answers, I gain information about their target market definition, compatibility with their business model, and growth objectives. Additionally, I determine the team's marketing and sales capabilities, as well as the sustainability of their growth strategy.

4. What unique insights has the team learned?

This question helps me understand what the entrepreneur has learned from their experiences and its application to their business. Success in business relies on continuous learning and adaptation, making these lessons crucial. Through this, I can see how entrepreneurs overcome challenges, their flexibility, and the effectiveness of the strategies they develop.

5. How did the co-founders meet?

This question helps me assess the relationships and working history among the entrepreneurial team members. Understanding their compatibility, trust, and ability to collaborate effectively is essential for the venture's success. Additionally, it enables me to anticipate potential conflicts and gauge the sustainability of the venture.

6. What are your superpowers?

This question helps me recognize an entrepreneur's unique skills and strengths, which directly influence their venture's success. Their answer reveals how they plan to use these abilities to contribute to their business.

For example, an answer might be, "My superpowers include solving complex problems with creative solutions and motivating my team towards a common goal. These abilities are critical in ensuring a venture's success."

7. What keeps you awake at night?

This question helps me understand the entrepreneurs' primary concerns and their awareness of potential risks or challenges. It also indicates their dedication to sustaining their business and achieving success.

For example, an entrepreneur could say, "Maintaining my venture's growth rate and finding strategies to expand our customer base keeps me awake." This response reveals the entrepreneur's growth-oriented mindset and their active engagement with the issue.

The answers to these 7 magical questions significantly enhance my understanding of a venture's business model, objectives, market, and entrepreneur's vision. The real magic in investment decisions comes from evaluating each venture individually based on its unique situation.

“It is our choices, Harry, that show what we truly are, far more than our abilities.” - Albus Dumbledore ― J.K. Rowling, Harry Potter and the Chamber of Secrets

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