How to interview an investor
If you’re applying to a venture capitalist firm it is important to prepare for any questions they could ask about your previous experience. Particularly, you must be prepared to answer questions regarding your experience in the field (how you added value to the deals you worked on) and your expertise in the field. You should be prepared to answer general investment-related questions like how you’d calculate a cap table, or the most important metrics and ratios of an industry and, in addition, specific VC questions about market sizing and guestimates.
In preparing for a meeting with an investor, it’s important to remember that investors are looking for individuals with a genuine passion in early stage startups. Be sure to bring a lot of energy to the interview and keep your focus on the things that get you excited about seed-stage company activities. This will help you stand out from the other candidates, and show the interviewer you’re a good fit for their company.
It’s also essential to know the specific risks associated with the business when investing in a startup. For example you should be aware of the standard exit strategy of an angel investment or seed investment, as well as the different control mechanisms that investors have at their disposal, such as drag-along rights and veto rights. Additionally, it is essential to be aware of the common timelines and the steps in the process of closing a VC investment to be able to discuss how your experience fits into that timeline.
