How to Interview an Investor

How do you interview an investor?

If you’re applying to a venture capital company it is important to be prepared for any questions they may inquire about your prior experience. You should be prepared to answer questions about your experience within the industry and the deals you’ve made in the past (how you were able to add value). You should be prepared to answer questions regarding general investment questions including how to calculate a cap table or the most important metrics and ratios in the industry.

When you are preparing to meet with an investor, it’s important to remember that investors are looking for individuals who have a genuine desire for early stage startups. Bring enthusiasm to the interview and focus on what gets you excited about seed-stage companies. This will allow you to stand out from other applicants, and show the interviewer you are a good fit for their company.

Additionally, it’s essential to be aware of specific risks of investing in a startup, like the typical exit strategy for an angel or seed-stage investment, the tech-data-room types of control mechanisms that investors have access to such as veto rights, drag-along rights, and board composition rules. It’s essential to know the typical timelines for closing a VC deal to be able to explain how your experience fits into.