How to interview an investor

If you’re applying to a venture capital firm it is important to prepare for any questions they could ask about your previous experience. You should be prepared to answer questions regarding your experience in the field and your previous deals (how you were able to add value). You should be prepared to respond to general questions about investing, such as how you’d calculate a cap table or the most important metrics and ratios of an industry, as well as specific VC concerns regarding market size and guestimates.

When preparing for a meeting with an investor, it is important to keep in mind that investors are looking for people who are interested in early stage startups. Bring an abundance of enthusiasm to the interview, and concentrate on what makes you excited about seed-stage companies. This will allow you to stand out from other candidates and prove to the interviewer you’re a perfect fit for their company.

Additionally, it’s crucial to be aware of the specific risks that come with investing in a startup, like the typical exit strategy for a seed or angel investment, the different types of control mechanisms available to investors such as veto rights, drag-along rights and board composition rules. It’s essential to know the typical timeframes for closing a VC deal, so that you can explain the way your experience fits into.