We have shared with you tips on how to get investment ready, how to select the right investors; and now we will share with you questions you should be asking potential investors before you take their money. 

Here are 15 questions you should be asking your potential investors 

1. What types (or focus sectors) of companies have they invested in, in the past?
2. What kind of support do you provide to these companies?
3. What kind of investments (in terms of value and round) do you provide? 
4. How many investments have you made in a company?
5. Do you typically lead investment rounds? Or do you prefer to co-invest?
6. How many investment rounds have you led?
7. How long does it take to close?
8. What is the first thing we need to do after closing?
9. What do you expect from us going forward if you invest in our company?
10. Will you be personally involved in the company?
11. What metrics would you be tracking?
12. How often would we be required to provide progress reports?
13. What is your most successful investment?
14. Are you willing to share the contact information of 2-3 companies you have invested in?

These are questions that should guide your decision-making on whether the investor is the right fit for your company and for you. But most importantly make sure you listen to your gut feeling and ask any other questions that arise from within. 

Contact Versa Research your trusted data, research & consulting partner!

References

https://www.forbes.com/sites/alejandrocremades/2019/02/21/20-questions-entrepreneurs-should-ask-investors/?sh=1c1988d97670