What is it about your offering, your approach, your technology and your team that makes your company able to achieve and execute on this opportunity? But we’ll look into it further after this meeting.” The key is to maintain control of the conversation because it shows you can handle a curveball. Asking questions also can show that you are interested in the job. The Bond Pays Interest Semi-annually. There are three best practice techniques for preparing: For important investor events, we frequently spend many hours preparing teams with tough questions, video review and rehearsals. Have the mind-set of a teacher. You can start by sharing some of your personal interests and experiences that don't relate directly to work, such as a favorite hobby or a brief account of where you grew up, your education, and what motivates you. They should. That attitude leads to failure. Answer #1: If you are an income investor, you can consider building up your portfolio in either passive ETFs, strong and stable dividend stocks and also REITs. Understand investors’ motivations to win them over. Then you can use proven techniques to get yourself back to safe ground and onto a topic that you can talk about with confidence. Many leaders are nervous of public speaking. Maybe the company has zero revenue, a poor growth strategy or a weak CEO. For the company, this is an opportunity to maximize the value of the investment, but they must also be wary of getting off on the wrong foot with the investor by being overly aggressive or appearing uninformed. 7. The fact is, it may be a company that you don’t think is a viable competitor, so you don’t know much about it. And people have their own style – from super soft to nail hard. There are some investor questions you cannot answer. Like in most negotiations, if you have several interested parties, they may bid against each other, which will allow you to obtain the best terms for you and your company.”, —Doug Bend | Founder/Small Business & Startup Attorney, Bend Law Group, PC, “The best way to tackle this question is to show reasonable estimates for customer acquisition, using well-researched numbers and reasonable conversion rates. Your job is to inform, educate and perhaps even entertain. We’d be happy to discuss ways we can help you. They undoubtedly helped us secure Sky TV as an investor.”, “The new presentation properly represents the institutional quality of our fund. They want to know how you’ll outdo everything you’ve already done. N.B. Too many people treat tough investor questions as an exam. References. If you’d like to improve your handing of tough investor questions, please give us a call. The more it feels like a conversation rather then a quiz, the more likely you’ll be successful. Other founders have taken the middle ground by cashing out some of their shares to secure their personal finances, and then continued to go big. Translation: Why should an investor care about your company? We have seen too many people turn up to investor Q&A sessions unprepared. An employer will have developed an impression of you from your CV and cover letter. A crash course in VC deals and a good deal lawyer will make sure you maximize the former and mitigate the latter. Should further information and/or clarification be needed to answer your question, ESMA staff will contact you. Do you have more questions on pitching or handling due diligence? Our lesson: Know your landscape and learn from prior failures and success. Venture capital should be looked at as an accelerator for existing success, not as a runway extender to get it right.”, “Many investors will know going into a deal whether they want preferred stock or a convertible note. It adds interest and colour to... Read More, So What? When selecting a public speaking coach or presentation trainer, you want to work... Read More, How To Use Powerful Language For Leadership Communications   Great leaders use Power Language. Most investors are looking for management teams that listen to them and want to learn. With an additional 56 professionally written interview answer … If you learn our approach of Question Triage (a technique for classifying questions up front) you can spot these a mile off. Investors Need To Ask What, Not Why. Questions to Ask Investor Relations Reps at the Companies. Investors have more opportunities than... Read More, Your leadership talks need to be persuasive As a leader, every talk or presentation you give is an exercise in persuasion.... Read More, A well-crafted private equity pitch book can make the difference between securing a first meeting with investors and getting a... Read More. Pitch the finances and how the VC will make money; if he asks you a question, then you got him to bite — now it’s all about your elevator pitch. And does is really... Read More, How can you be seen as a top 1% fund by investors? And as you listen, you will learn something. Venture Capital: The Definitive Guide for Entrepreneurs, Investors, and Practitioners. Avoid asking personal questions of the interviewer and avoid asking questions pertaining to politics, religion and the like. This presentation, again, is for educational and instructional purposes only. Know your weaknesses better than your strengths. In addition to ascertaining the legitimacy of the stock, you will get a much clearer picture of their overall situation. – Wealth & Money Management Awards, Best for Investor Presentation Coaching Originally published in Upstart Business Journal. 95 investor relations interview questions. Just like elite athletes, you only build muscle strength with practice. Some questions will get asked over and over. 6 Key Ways to Answer Investor Questions Entrepreneurs looking for investor funding often fail to realize that all money comes with strings. As we said before, your meeting is not an exam. If you need help with questions to ask investors, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Every entrepreneur should be prepared to answer these six questions in an investor pitch meeting. Question #2: What should be the ideal asset allocation of the different asset classes for an investor? However, if the weaker answers are given to the most typical investor questions, you have a problem. So investors need to balance expected returns with risk. – Alternative Investment Awards, Benjamin Ball Associates Ltd But weighing expected return and expected risk is subjective. What the investor are looking for here is who are your mentors and advisers. It's a real challenge these days. (2001). At SuperReturn Emerging Markets in Amsterdam, experienced LPs... Read More, A great elevator pitch is an essential part of your toolkit Last month I chaired the Quickfire Showcase at Berlin’s... Read More, You must prepare for media interviews The excruciating Newsnight interview with Treasury Minister Chloe Smith this summer is one example of... Read More, These days, we are writing more than ever. For example, if you have watched the Shark Tank TV series, you probably noticed that the Sharks always ask the entrepreneurs for their intended “use of funds.” Prep by picturing your future: What staffing or product creation will help you have the business you want to have?”, —Brian Moran | Founder/ Director of Online Sales, Get 10,000 Fans, “The best way to handle that question is by not approaching VCs until you have achieved traction. 0845 676 9766, © Benjamin Ball Associates Ltd 2009-2020 | Site Map | Privacy Policy Call us today, Best for Financial Presentation Training This rate is determined by a number of factors, like what’s going on in the economy and how risky it is to be lending to the company or government. You do not want to score points with your answers. And, different investors approach questioning in different ways. How can you prove that you have a truly unique value proposition? Ideas are a dime a dozen, but execution is everything. Toronto: John Wiley & Sons. Find out more about how to manage cookies. Addison House Not a good thing. And do you want... Read More, How to tell a great business story Leaders use storytelling so that audiences listen, remember and act on what they... Read More, How do you make your investment pitch more memorable? By Peter Leeds . How to Answer Investors’ Toughest Questions, Join Our Newsletter To Receive Our Latest Articles And Events, 6 Ways To Increase Your Odds of Landing Venture Capital, Startup Fundraising: What Investors Want to See. If an investor asks... Read More, How do you choose a public speaking coach? Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. Folks who watch the TV show “Shark Tank” know this feeling. I found myself coming out of these meetings frustrated that the investor didn't ask me any of the questions I was prepared to talk about. As we’ve all heard, a number of founders have said yes to exits their VCs wanted them to say no to. The bumbling detective always finished his interview with a suspect and, as he walked away, would say “Just, one more thing….’  With that one line he caught the suspect off guard and got the information he needed. Are you using all the tools at your disposal to create and deliver persuasive... Read More, Do your public speaking skills inspire, motivate and influence others? You could ask probing questions, such as: For more hypothetical questions you could explore what they believe: “And what do you think?”. Every investor will ask you when and how he will recoup his investment. Site by silver.agency | Google My Business |. Before going into a meeting with a VC, make sure to tell him about your experience, your track record and, most importantly, how you will recoup his money. If you don’t directly answer potential customers’ and investors’ questions, you’ll lose credibility, and they’ll lose interest in what you’re selling or building. Learn about interview questions and interview process for 475 companies. If you are a child of the ‘70s you may remember the TV series Columbo. ”, “VCs want to invest in founders who are dedicated to “hitting a home run.” If you’re satisfied with building a small company, that’s a big red flag for VCs. London Before our first VC meetings, my team sat down and asked each other “gotcha” questions until we were all experts.”, —Neil Thanedar | CEO and Founder, LabDoor, “With proper due diligence and competitive analysis, you should be able to make a case for how you differ from other folks in the marketplace. Be specific with your questions. Angel investors, in particular are likely to leave it up to the company as the more sophisticated party. Your answer to this question can make or mar your chances of getting an investor’s check. For the company, this is an opportunity to maximize the value of the investment, but they must also be wary of getting off on the wrong foot with the investor by being overly aggressive or appearing uninformed. —Peter Minton | Founder & President, Minton Law Group, P.C. We specialise in transforming financial and leadership communications. Use stories, examples and illustrations to bring your business to life when answering investor questions. That's the question I put to the panel... Read More, What do investors really want? To Get Your Startup Funded, Answer These 3 Investor Questions in Your Pitch. 1 King Street This is a mistake. The wording of the question is going to change, yet it’s the traditional "elevator pitch" question. That means each investor will assess you differently. For some, it will be about measuring you as a person, for others it will be about gathering more data.