How to Answer the Investors Questions

How to Answer the Investor’s Questions

1 min read In raising funding, the startup will meet with many investors, so how should they answer the investor’s questions?

First, listen to the investor’s questions carefully. Answer each one directly and to the point. If a question requires a number, give that number.

For example, if the investor asks how much revenue do you have, answer with:

“We have $200K of revenue so far this year”

or,

“We have $10K of monthly recurring revenue”.

Be careful not to answer every question with a story. Long-winded answers waste the investor’s valuable time and often miss vital information.

If the investor wants to hear the back story for a particular question, they will ask. For example,

“That sounds interesting. Tell me how you arrived at that model”.

The investor often has a list of questions to go through and a limited amount of time.

Not responding with direct and to-the-point answers only serves to lengthen the pitch process. Also, some investors may interpret the long and winding response as avoiding the answer, which raises a red flag.

It’s best to be straight up.

Read more in the TEN Capital eGuide: https://tencapital.group/the-art-of-pitching/


Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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