What questions could you be asked by potential investors?

Here are some areas to consider in your preparation

Overview:

Explain what the company does, what is unique about the company, what big problem does it solve, how big is the opportunity

Market:

What is your Total Addressable Market?

What is your beach head, why did you select it and big is it?

How did you arrive at your sales and its growth rate?

Founders and if appropriate team:

Who are the founders and team, what is their relevant experience, what are the  motivating factors that keeps them building the business? 

Do you have any gaps in the team in the short term that will prevent you from meeting your plan?

Why this team?  What can your team do that no one else can do.

How may employees now and how do you plan to scale the team?

Any key hires that are not needed now but will be needed within the next 24 months. 

What are the key metrics the management team is focused on? 

Products and or Services:

What pain point are you solving or what can they now do with your product or service that they couldn't do before?

What is the product roadmap timeline?  Critical path items. 

Why this product? What did you learn from customers and or market  that validated the need? 

Demo the product if you can

What key features didn't make it into the product, why and what is the plan to add later? 

Is there an early adopter strategy to receive feedback?

Competition:

Who are your competitors?

What gives your company the advantage?

What can your competition do that you can't do right now? how if necessary are you going to address that gap?

Side by side comparison on price, features and performance of the competition

Are there any barriers to entry?

Marketing and Customer Acquisition:

How are you going to market your product or service?

Why did you pick the channel? 

What is and how long is the sales cycle?

What is the LTV and COCA customers?

What is your social media strategy?

What is your customer traction and how can it be accelerated?

Risks:

What are the principal risks to the business?
What is your de-risking strategy?

Are there any regulatory, legal or product liability risks?

Intellectual Property:

What key intellectual Property does the company have? (Patents, patent pending, copyrights, trade secrets, licensing,  trademarks, domain names) 

What confidence do you have that your company does not violate the rights of a third party?

Would any education institution, individual or company potentially claim rights to the intellectual property?

Financials:

What are the company's three year projections?

What were your key assumptions when you built the projections?

What are your unit economics?

What is your current burn rate? What is your expected burn rate prior to profitability?

How much if any equity or debt has the company raised? 

How much more financing will the company need to get to profitability?

How much of a stock pool is being set aside for employees? 

Financing Round:

How much is being raised?

What is the company's desired pre-money valuation?

What is the planned use of the proceeds? 

 

 

 

 

 

 

Was this article helpful?
0 out of 0 found this helpful


      This website provides general information related to legal and business matters. It is intended for educational purposes only. This website does not and is not intended to provide legal advice. Although we take great care to make sure that all of our information is accurate and useful, if you have a specific issue for which you need actionable advice, please come to the Martin Trust Center in person to speak to one of our Entrepreneurs in Residence or consult a licensed attorney or other professional. No attorney-client, advisor, or other confidential relationship exists or will be formed between you and the Martin Trust Center or the Massachusetts Institute of Technology.
Have more questions? Submit a request

Comments

Powered by Zendesk