Potential questions from investors

During your presentation to an investor, the investor will ask you a number of questions. Be prepared to answer these questions at any stage of the fundraising process:

  • How does your company fit into the industry?
  • What are the major obstacles to your success?
  • How did you calculate the size of your market and its growth rate?
  • What makes your company different?
  • What value do you provide that is not already available to your customers?
  • What factors most affect your profitability?
  • What are the barriers to entry?
  • How will you establish brand-name recognition?
  • How will you keep someone with a lot of money from taking over your market?
  • How will you continue to protect your intellectual property?
  • What is the profile of your end user?
  • What motivates you?
  • What advantages do your competitors have?
  • What reaction do you anticipate from your competition?
  • How do you intend to acquire market share?
  • How important is advertising?
  • How do you plan to fill staffing requirements?
  • What makes you lose sleep?
  • What is the lifecycle of the product?
  • What other products do you anticipate developing?
  • How do you compete in terms of price, performance and support?
  • What alternate suppliers are there?
  • What new capital expenditures will be required?
  • Will your present facilities accommodate expansion?
  • What specifically would you use the money raised for?
  • How much more financing will you require beyond this round?
  • What is your exit strategy?

Take notes on what the investor is focusing on and saying. Reply in a timely manner (less than one week) to the investor’s follow-up requests or questions that you could not answer at that time.