How to interview a prospective investor
If you’re applying to a venture capital firm, it’s important to be prepared for any questions they might ask about your previous experience. You must be ready to answer any questions regarding your experience in the industry and your previous deals (how you contributed value). You should be prepared to respond to questions about general investment questions including how you calculate a cap-table or the key industry ratios and key metrics.
The most important thing to remember when making preparations for an interview with an investor is that they are looking for someone who has a genuine interest in early stage startups. Be sure to bring lots of energy to the interview and concentrate on the things that make you excited about seed stage company activities. This will help you stand out from other applicants and prove to the interviewer you’re a great fit for their company.
In addition, it’s important to be familiar with the specific risks of investing in a startup, for example, the typical exit strategy for a seed or angel investment, the different types of control mechanisms that investors have access to such as drag-along rights, veto rights and board composition guidelines. It’s essential to know the typical closing dates for the VC deal so you can describe how your experience is a part of.