Startup Hacks
30 Questions Angel Investors Will Ask Entrepreneurs
Entrepreneurs must be ready while pitching their startup companies to angel investors by predicting some basic questions. If you don’t have a thoughtful and a reasonable answer to these questions, then there is a decreased chance of an entrepreneur’s company getting funded.
Here we help with some of the questions which the angel investors are likely to ask the young entrepreneurs.
- What does the company do and what is unique about your company?
- How big is the market opportunity?
- What is an actual addressable market?
- Why does your company have high potential growth?
- Who are the founders and key members of your company?
- How do you plan to scale the team in the coming 12 months?
- What relevant domain experience does the team have?
- Why do users care about your product or service?
- Can you provide a demonstration of your product?
- What are the major product milestones?
- Why do users care about your products or services?
- What have you learned from your last version of your product?
- What are the two or three key features you wanted to add?
- Who are the company’s competitors?
- What advantages does the company have over you?
- What is the cost of a customer acquisition?
- What is the projected lifetime value of a customer?
- How can the early traction be accelerated?
- What has been the principle reasons for the early traction?
- What legal risks do you have?
- Do you have any regulatory risks?
- Are there any product liability risks?
- How was the company’s intellectual property developed?
- What are the company’s three-year projections?
- What future equity or debt financing will be necessary?
- What is the company’s desired pre-money valuation?
- How much is being raised in this round?
- What is the planned use of proceeds from this round?
- How much is being raised in this round?
- What future equity or debt financing will be necessary?
- How much of a stock option pool is being set aside for employees?Well, be prepared to answer all these questions before pitching up a startup company.