Why should I invest in you? What would be your answer if this question is asked to you while pitching. Investors have their own parameters to judge whether a startup will endure in the business cycle. At first investors obviously look at how brilliant your idea is. Then they look for numbers. Numbers as in, Gross Margin, annual revenue, amount of capital invested etc. If all these parameters are satisfied, then important round of questions are asked to the pitchers.
This is the final round of the meeting which will decide whether or not you’re going to receive any funding for your startup. If you prepare for these questions prior to the fundraising, you can have a great leverage negotiating with the investor. An investor can be anyone who is willing to invest in a startup. For example they can be Venture Capital firm, angel investor or a High Networth Individual (HNI).
There are questions which are most certain to expect in these pitcher meetings. The important ones are listed below:
Why should I invest in you?
What if you run out of money?
Why should I care?
Numbers, I’m more interested in numbers?
Who is your target audience?
What will you do with our money?
Who are your competitors and how will you resist them? Also tell me what is more unique feature you are offering which the competitor isn’t?
When will your startup turn profitable?
How will you justify this valuation at which you’re trying to raise funds?
These are sure shot questions which you can expect in the fundraising meetings. If prepared well you can end up in a sweet spot while closing the deal. Make sure you don’t confuse your potential investor. Also make sure your startup has relevance in this technology driven world. The world where technology is advancing every single day.
We at Convey Connect help early startup founders, raise seed capital. So if you are aspiring to raise funds for your startup or you’re willing to invest in the early startups then contact us ASAP.