Questions entrepreneurs should ask potential investors

Founders often struggle and get frustrated with the process of securing investment. There are many reasons for this, but one big reason is that it's hard to quickly figure out if an investor would be a good fit or not without knowing them personally-especially when they're looking at your idea versus understanding what makes you unique as both founder/entrepreneur AND potential customer!?

That being said: Don't think about finding investors like speed dating and don't settle on anything less than what's right! Instead make connections slowly over time via phone calls & meetings and ask the right questions:

What is your investment outlook?

When you start your own company, it is important to know the investment strategy of each investor. Even before meeting them in person for an official presentation and discussion about their long-term value creation or short term profit goals (or lack thereof), ask yourself if they are looking only for financial backing from beginning until end? Pure plays might be tempting but especially with the first partner found on board-look into what type(s) of business relationship YOU want going forward and aim higher than just money.

What does your process look like?

You've probably heard the question "When do you plan on closing?" asked by every investor at some point in your financing journey. The answer to this may seem straightforward, but it's an important one that'll give insight into what their timeline looks like from early stages all through the investment approval process - which will vary depending upon how much money is being raised and with whom they're working out agreement terms before time begins running low!?

So what you're really asking here is, what does your timeline look like for us? This will of course vary depending on how much money you are raising and which VCs. A key benefit to leading with this question is that it gives insight into their operation as well as giving a window for when things might close-time frame wise - also giving you more knowledge about current industry trends they may be interested in investing within or avoiding entirely!

When was the last time you invested in a startup?

Seed stage VCs are not passive investors. They should be making investments actively, and if the investor hasn’t made an investment in that time period you might want to move on because they most likely don't have any money available for your project at this moment which could waste precious productive seconds of meeting preparation or discussion with them during said encounter.

You can use tools available through sites like LinkedIn's Investing Explorer database which tracks activity based off investment ranges as well as Crunchbase - which lets users see what companies investors own stock options outright!

What is your typical investment size?

Investors come in all shapes and sizes—some might invest $25K-100k, while others may not write checks smaller than 250k. Before wasting your time or an investor’s money on a proposal that won't get them excited about investing further resources into the company you're pitching to them (especially if they haven't invented yet), do some research first! You can use 'AngelList' to get acquainted with how big each individual's typical investment size is likely going to be based on their profile information alone.

How does our business fit within your portfolio?

This is the question you should ask your investor before starting a business with them. As a company in the process of growing, you’ll want to make sure that your investor's portfolio reflects not only what they invest into but also how it can benefit them as well. If there are other businesses in their portfolio that could be similar or conflictive, then it’s worth getting ready for quick meetings! On one hand they might have just what we need — an all-inclusive group of companies who share our model but don't directly compete against each other so long as no single firm has too many overlapping products/services offerings (which often leads to competition).

How do you engage with a startup and its CEO post investment?

This is a really important question to ask your potential investors because it will help you figure out what they want from the company. For example, some investors might have only general guidance or support while others plan on being more hands-on with specific tasks like market data collection and/or legal advice; while another investor might only take up seats on boards or administration positions without ever getting his hands dirty with day-to–day operations of any kind (they may have different ideas about how things should be done). So make sure that their desires align with you before signing anything!

You can have a conversation with CEO's of their current and past portfolio companies to understand what they're looking for in a new company. You’ll understand what it will be like dealing with them on valuation; key negotiation tactics such as negotiating term sheets or other important documents related to financial transactions.

What is it that you expect from this startup?

When pitching an investor, the first thing you need to do is ask them- what it is that YOU expect from this startup. Investors are there for one reason - they hope their investment will generate returns on behalf of themselves and others who have invested in them so far (and might yet). If your goal remains unclear after speaking with all parties involved-including potential employees or partners- then how can we expect someone else's money to go towards something when neither knows exactly where things stand? Be specific! This is not just important because clear intentions give us confidence as founders; but also crucial if our business wants long term success like sustainability.