How many employees do you have? Every investor is a little different. While this is certainly not an exhaustive list of the important questions to ask when investing, is meant to demonstrate the difference in the mindset of successful investors compared to most retail investors. Three years? When you ask these questions, write down the answers you re-ceive and what you decided to do. 10 Questions to Ask Investors (Before You Take Their Money) 1. Acing investor meetings and landing that funding is as much about the questions you ask, as the answer you have to what investors will grill you with. This is an introduction to key performance indicators and other non-financial metrics that are going to affect the growth of your business. Summary of Questions the Best Investors Ask . Questions to Ask Investors: Everything You Need to Know 1. This is typically helpful if you land a VC that has enough capital to continue investing in your next financings as this will save you a lot of time from not having to do future roadshows. Do you have a specific industry or geographic focus for your investments? Ideally, people investing for retirement always should have been able to feel confident that their financial advisors were giving them unbiased advice and recommending what was best for them. The second is being able to ask the entrepreneur how the investor behaved during tough times. 15 Questions to Ask Management Teams Whether or not you should meet with a company's management team is a debatable topic among fundamental investors. Tell me about yourself. Five Questions to Ask Before You Invest Whether you’re a first-time investor or have been investing for many years, there are some basic questions you should always ask before you commit your hard-earned money to an investment. Getty Images. How does that compare to three years ago? Yet, you don’t want to be weighed down and held back from actually gaining and delivering results. A term sheet (or offer) alone isn’t a guarantee of a … Top 10 investor relations interview questions with answers In this file, you can ref interview materials for investor relations such as, investor relations situational interview, investor relations behavioral interview, investor relations phone interview, investor relations interview thank you letter, investor relations interview tips … Questions an Investor Should Ask . In other words “what are the odds this date is going somewhere?” It can also help you get a better perspective on the number of no’s you can expect before getting the checks you crave. Do you arrange investor meetings and calls directly, or coordinate with third parties? During Tesla’s upcoming Q4 and Full Year 2018 earnings call this Wednesday at 2:30 p.m. PT (5:30 p.m. How much burn will occur until the comp… Startup founders are most often consumed with mastering investor meetings by having all the right answers. With a foreword by ‘Shark Tank‘ star Barbara Corcoran, and published by John Wiley &…. Without a lead you are really nowhere. If not, you might be wasting a lot of precious time. ASK QUESTIONS | 11. If the number seems high, ask them why they think that is. This information is intended as a general guide to the investor contemplating an investment in a "private company or project". #9 : What if three or five years down the road we think you’re not the right person to continue running this company—how will you address that? The book offers a step-by-step guide to today‘s way of raising money for entrepreneurs. Who handles accounting? Name someone you chose not to include as a … If something goes wrong, your notes can help to establish what was said. You want to know if the fund has enough "dry powder", or money in their fund, to... 2. This is not a one-way interrogation; it is about widening the dialogue for the benefit of all. In addition to ascertaining the legitimacy of the stock, you will get a much clearer picture of their overall situation. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash. Of that, what is your company’s market share? A question that prompts the manager to speak about the emerging competitors in the industry in which the company operates will let the investor know who … Of that, what is your company’s market share? Peter Leeds is a highly respected authority on penny stocks who has been quoted in major media outlets and published in Forbes and Business Excellence Magazine. Are You Willing to Lead a Financing Round? Who are your biggest competitors? 11) What Has Made the Biggest Difference Among Your Successful Investments? You may opt-out by. To get the most out of your brief call, you need to ask the right kinds of questions, such as the following: How large is the potential market for your product? Who holds which titles? Though if they are a fit, then it’s far more efficient to get more money from the same source, than starting from scratch again. The Idea Generator (You are the visionary, you come up with the great next big idea, your thoughts … Why did she leave that position for this one? Get a figure and keep the ball moving in the right direction. A simple return is obvious. However, asking questions, and good questions says a lot about you too. It summarizes key questions to ask and issues to deal with before investing. How much more money will you need to raise to keep operations going? This is a question … 5. Most recently, I built and exited CoFoundersLab which is one of the largest communities of founders online. Raising money is far more about the added value you can get with these people on your team and with a vested interest in your success than the funding itself. Or turn them down. Moreover, I also provided a commentary on a pitch deck from an Uber competitor that has raised over $400M (see it here). Are they under a lot of pressure to deliver big returns to their earlier investors? I have been involved with the JOBS Act since inception and was invited to the White House and the US House of Representatives to provide my stands on the new regulatory changes concerning fundraising online. Trying to predict how a job interview will go is a dangerous game, particularly in the IR world. Don’t leave this meeting without a lead on another investor or source of funding. How much of a stock option pool is being set aside for employees? Here are the, For a winning deck, take a look at the pitch deck template created by Silicon Valley legend, Peter Thiel (, ) that I recently covered. Often, interviewers will ask questions to find out the level of technical knowledge As Investor Relations that a candidate has concerning the duties of a care assistant. 19) How Much Do You Reserve For Follow On Rounds? © 2020 Forbes Media LLC. Is there an existing board or advisors? Business leaders can ask themselves these questions to get a different take on how purpose and people are seen in their own organizations and to examine their own motivations and practices. If, they aren’t demanding board seat, who are the names they’d like you to get on there? I am a serial entrepreneur and the author of the The Art of Startup Fundraising. You do want a good amount of interaction. Are you really talking to a decision maker? They may have really bad term sheets that no one accepts. These are questions like: How did you come up with this idea? What is your employee turnover rate? 30 Public Relations Interview Questions to prepare for The best way to prepare for an interview is to make sure you know how you will answer the questions that are likely to come your way. How Do You Choose Your Investments? What future equity or debt financing will be necessary? Top 10 Questions Investors Ask During Fundraising Try this test to see if it's the right time to pursue investment money. Look for a firm with deep experience across the board , not just one side of the Street. How are shares split? There are two things that you will accomplish here. Make the ask. Of course, each investor’s decision-making process is unique. Some other questions are indications of interest that follow from what you’re presenting. To get the most out of your brief call, you need to ask the right kinds of questions, such as the following: How large is the potential market for your product? Ten Top Earnings-Call Questions ... An analysis of second-quarter earnings releases by the Corporate Executive Board’s Investor Relations Roundtable showed that while 64 percent of S&P 500 companies provided guidance, only a third of those were doing so on a quarterly basis. In other words “what are the odds this date is going... 2) What Percentage of Your Term Sheets Turn into Checks? Who are your investors so far? Do they have cash ready they desperately need to deploy and get working? Jennifer Bargrove, principal consultant at VMA Executive, says that as IR recruitment is relatively infrequent, internal HR managers might not have expert knowledge of the role. Here’s what you should be quizzing them with…. Due diligence is typically hell. A term sheet (or offer) alone isn’t a guarantee of a closed deal. Know the process and worst pains so they aren’t a surprise later on. If the insider works in investor relations, and talks to investors as part of his job, and helps you with your earnings model: no jail, even if you talk … I have the pleasure of interviewing some of the most successful entrepreneurs on the DealMakers Podcast. His popular Peter Leeds Stock Picks newsletter, available at, has sold more than 42,000 subscriptions. How many employees do you have? All Rights Reserved, This is a BETA experience. The first thing is that you will show a high level of sophistication towards the VC. 16) Who Else Needs to Approve This Investment? Where did the CEO work before joining this company? What would they say about your product? Here you will be able to learn how these founders did it and what kind of questions or concerns they had when engaging with potential investors. To ‘make the cut’ entrepreneurs must be prepared to articulate and answer the following questions. Even if you come out without a funding commitment you’ll have learned a lot and have some better leads and data to supercharge your next pitch. How and how often will the firm communicate activities to me? Investor Tip. The impetus to change doesn’t have to come from investors only. This is especially true when it comes to investing success.Here are the five questions successful investors ask … However, there are a number of things that every investor must understand before completing diligence and arriving at an investment decision. At a minimum, you’ll go in sounding smarter and more prepared. It is used as an ice breaker, gets you talking about something comfortable, but you need to have something prepared for a response. 18) How Much Have you Raised of Your Current Fund? 10) What Do You Expect This Investment to do for Your Portfolio? SurveyMonkey Investor Relations. 5 questions for Thierry Huon - VP Finance Head of Investor Relations Financial results interview The RENAULT Group presented H1 Financial results on 30 July 2015, and we wanted to take this opportunity to ask five questions to our VP Finance Head of Investor Relations to have a "digest" feedback for our blog readers. With a foreword by ‘Shark Tank‘ star Barbara Corcoran, and published by John Wiley & Sons, the book was named one of the best books for entrepreneurs. If this is a low level associate, make sure you know who you really need to convince and what their trigger points are before you get there. If it’s not a fit, who do they think would be the right fit. How does this compare to the industry average? How much equity and debt has the company raised; what is the capitalization structure? That’s not a bad thing. What are the biggest risks and threats to the company? 20 Questions Entrepreneurs Should Ask Investors 1) What Percentage of Your Meetings Lead to Term Sheets? Let your financial profes-sional know you’re taking notes. Or they may be so inefficient and tough in the process founders end up going elsewhere for their capital. 6) Who Else Would Be Interested in Funding This? What Is the Current State of Your Fund? The second question your investors can ask is how the business is performing. 20) Could you introduce me to an entrepreneur of your portfolio that failed? Opinions expressed by Forbes Contributors are their own. Why do they stop using it? They’ll know you’re a serious investor and may tell you more. What is the company’s growth rate in terms of sales? As for transparency, says Rob Binns, former VP of Investor Relations at Hewlett-Packard, who now serves as CFO and VP of HP Software, it is “critical.” “In our case, management is executing on a five-year turnaround plan….and helping investors understand what the milestones are and what they can reasonably expect along the way is incredibly valuable.” If they are in, who do they usually co-invest with? Angel investors are looking for a return on their investment, the company’s current financial situation, and proposed future burn rate. I am an active speaker and have given guest lectures at the Wharton School of Business, Columbia Business School, and at NYU Stern School of Business. Who is their fantasy board lineup? Know if this is within your runway. What are the key assumptions underlying your projections? This will be a good question to understand what you can do better from a storytelling perspective and how to shape up your pitch deck which is the most important document when you are fundraising. Why did you decide to (some marketing, product, or financial decision in the pitch)? Depending on the answer you will know if that investor may be able to help in future rounds. Author of The Art of Startup Fundraising & Serial Entrepreneur, Startup founders are most often consumed with mastering investor meetings by having all the right answers. What moves, entrepreneurial traits, or tactics have made the biggest difference in their startups being flops or top performers? That’s not a bad thing. 3) How Often Should We Expect to Meet After Funding? Their nephew or someone else internally? In a question such as this, there is an opportunity to demonstrate professional knowledge and awareness. Our People Powered Data platform enables conversations at scale to deliver … However, you don’t want it to sound memorized. I am a serial entrepreneur and the author of the The Art of Startup Fundraising. 15)  What Will We Least Like about Your Due Diligence Process? 2. You may not always want a follow up investment from the same investor. Before you invest in any penny stock, call the investor relations contact at the company. What Are Your Terms? Questions to Ask as an Investor. If they won’t lead you are are probably going to be circling back later anyway. There are six questions that investors will ask about you and your market opportunity before making an investment decision. How Involved Will You Be … 13) What’s the First Thing You’d Want Us to Do After Closing? This is a common question during an interview, possibly the most asked. For how long? What percentage of customers stop using your product? Or are they patient investors looking for a very long term investment, like a family office? As a PR recruiter, I know what sorts of questions crop up, so if you want the job then I suggest you take a look at the below questions and make sure you have compelling answers ready to go. Questions they might ask: What are the company’s three-year projections? You’ll set up more favorable negotiations. Even more important than landing a big check or big name investor is making sure you are choosing the right investor for you venture, at this stage, and for where you want to go next. 1) What Percentage of Your Meetings Lead to Term Sheets? Prior to CoFoundersLab, I worked as a lawyer at King & Spalding where I was involved in one of the biggest investment arbitration cases in history ($113 billion at stake). 2) What Percentage of Your Term Sheets Turn into Checks? Those against meeting with management believe you can get what you need from the numbers and company filings. 14) How Long Does it Typically Take You to Close? What are they going to get out of this? 1. Some investors are going to be far more labor intensive than others. Questions to Ask Investor Relations Reps at the Companies, Characteristics of a Successful Penny Stock Trader, How Expectations Drive Penny Stock Prices, How to Identify Poor Quality Penny Stock Companies. How does that compare to three years ago? Where are they at with their fund or portfolio? Get it out in the open and get the chance to squash their objections on the spot instead of leaving them the chance to give you a ‘soft no’. By Springboard Enterprises @SpringboardEnt. To get the best in your corner (and their money), as well as kicking off the relationship right, here’s the top questions entrepreneurs should be asking investors. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash. Know whether the process is taking abnormally long or not. Know and you can deliver. 5) How Many Follow Up Investments Have You Made? 1. The investor relations role at a PE company or Fortune 500 company will be inherently be slow paced because of the environment and the nature of earnings releases where as small market movements can have significant impact on hedge fund profits therefore you must be … Get a head start and clear expectation of what they are thinking you should do, and they would like to do with your company. At every stage you are going to need a lead investor. The questions you ask have a major affect on how successful you become. 4. How many of your employees have been with the company for less than two years? What about (some objection related to market, competition, financial plans)? Most investors are much more strategic than that. Where is the company registered? You may have different needs and goals at the next series. SurveyMonkey’s mission is to power curious individuals and organizations to measure, benchmark and act on the opinions that drive success. This will give you an idea if they are meeting with you to invest or if they are fundraising and looking to use you as leverage during their fundraising efforts to show their own investors their pipeline of deal flow. Under what circumstances has the firm been disengaged? What unique skills and talents does each owner contribute? For a winning deck, take a look at the pitch deck template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. 6. Ask your potential investors what they expect and what they plan to do to increase the value of your company. These questions are crucial to your pitch and will influence an investor’s decision. 17) How Much are You Going to Invest and Commit Today? Investor relations requires a strong understanding of the language and terms used on Wall Street, the questions analysts ask, and the storylines that attract the attention of investors. Be confident. If you accepted their check, who would they want to see on the board? What Other Investments Do You Have? How is the company currently organized? What is the status of your fund? What are the primary sales drivers for this company? 3. Moreover, I also provided a commentary on a pitch deck from an Uber competitor that has raised over $400M (, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation BrandVoice. Here are the top 100 questions you should be ready to get hit with. Are the services bundled or can I select among them? In summary, use these questions to ask investors to ace your next meeting and speed your startup along to the funding it needs. Typically, these are established at the time of the financing; so you have the basis for which to compare your actual performance. Where do you see this company in a year?
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