How do you interview an investor?
If you’re applying to a venture capitalist it is essential to prepare for any questions they might ask about your past experience. Particularly, you need to prepare to answer questions about your experience in the field (how you contributed to the deals you worked on) and your industry expertise. You should be prepared to answer general questions about investing, such as how you’d calculate a cap table or the primary metrics and ratios of an industry and also specific VC questions about market sizing and guestimates.
The most important thing to keep in mind when getting ready for an interview with an investor is that they are looking for a person who has a genuine interest in early stage startups. Make sure you bring a lot of enthusiasm to the interview and focus on the aspects that get you excited about seed-stage company activities. This will distinguish you from other applicants and show the interviewer that you’re a great fit for their company.
It is also essential to be aware of the industry-specific risks associated with investing in a startup, like the typical exit strategy for an angel or seed-stage investment, as well as the different control mechanisms that investors have access to such as veto rights, drag-along this link rights and board composition guidelines. It’s essential to know the typical deadlines for closing a VC deal to be able to describe how your experience fits into.