How to Interview an Investor

How to interview an investor

If you’re applying to a venture capitalist firm it is important to prepare for any questions they could inquire about your previous experiences. You should be prepared to answer questions regarding your experience in the industry and the deals you’ve made in the past (how you added value). You should be prepared to respond to general questions regarding investments, such as how to calculate a cap table or the most important metrics and ratios of an industry, as well as specific VC questions about market sizing and guestimates.

The most important thing to keep in mind when preparing for an interview with an investor is that investors are looking for a person who has a genuine interest in early stage startups. Be sure to bring lots of energy to the interview and focus on the aspects that get you fired up about seed-stage company activities. This will differentiate you from other applicants and demonstrate to the interviewer that you’re a great match for their company.

In addition, it’s important to be aware of the specific risks of investing in a startup, like the typical exit strategy for a seed or angel investment, as well as the different control mechanisms available to investors including drag-along rights, veto rights and board composition rules. It is also essential to be aware of typical timespans and steps of the process of closing the VC investment to be able to discuss how your experience fits into the timeframe.

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