​#InvestorAsks Top Questions Investors May Ask Founders Ne | Idea factory

​#InvestorAsks

Top Questions Investors May Ask Founders

Need to get ready for an interview with investors? Here’s the list of common questions entrepreneurs are asked. Check them out, prepare answers in advance, and go ahead!

Customers reach

How are you going to make the product recognizable and attract early users?

How will you recruit clients (SEO, SEM, virality, radio advertising, mailing, PR or something else)? Some may also ask about the cost per acquisition per customer and the average revenue per user (ARPU).

What advantages do you have in terms of distribution? How well do they work?

What worked and what didn't?

How are you going to distribute the product further?

Here you need to demonstrate your marketing knowledge and understanding of the way your product is going to reach the customer. Elaborate on your distribution strategy, highlighting its key advantages and practical value.

Business model

What is your business model?

How do you generate a profit?

What is the structure of the market and its growth drivers? How are they reflected in your strategy?

What are your economic units of measurement (CPA, customer churn, lifetime value)?

Are there any legal or regulatory issues that need to be resolved?

A business model reveals the way your startups will generate income and hence provide return to investors. Therefore, it’s important to stress its strong points and reflect how your business model corresponds to the market’s specifics.

Capitalization

How much money are you going to generate?

How did you calculate it?

How do you use the raised capital?

What goals will this money be allocated for?

What is your planned range of initial capital?

At this stage, you need to show how deeply you know the financial aspect of your project. Share statistics, calculations, research takeaways to make your arguments more sound. Explain how you’re going to reach this number and in that time frames.

How would you answer these questions? What else would add to the list? Comment below