An entrepreneur who wishes to present its venture to an investor must prepare for any question an investor might ask him and provide precise and comprehensive answers, otherwise the investor will never risk his money with you.

The following list includes 55 questions that the entrepreneur must have answers to:

Background

At the start of the presentation, the investor will want to receive a background about what the company does, why it’s interesting and why it’s gonna be huge.

  • What the company does and what special about it?
  • What problem it solves?
  • How big is the business opportunity?
  • What’s your chances to become a big company?

The market

The entrepreneur must present a clear picture about the market and its size.

  • What’s the size of the market and its growth rate?
  • What market share you expect to have after X years?
  • Why your company has a high growth potential?

The Team

For many investors, the team is the most important aspect in the company. It must show dedication, enthusiasm and experience that is relevant to the industry.

  • What’s the team’s experience?
  • What’s your vision?
  • What addition you require for the team in order to be complete?
  • How and why your team has the ability to execute the business plan?
  • How many employees?
  • What’s the plan to increase the headcount in the company?

Product/Service

The entrepreneurs must present the product or service that constitutes the core of the company and expect the following questions:

  • Why would customers use your product and not others?
  • What are the main milestones regarding the development of the product/service?
  • What’s the main differences between your product and competitors’?
  • What’s the future plans for the product?

Competition

There is no such thing is “no competitors”. Investors don’t like this answer and want to know the answers to the following questions:

  • Who are the main competitors of the company?
  • What’s your competitive edge?
  • What are the advantages of competitors compared to you?
  • How will you defeat your competitors?
  • What are the market entry barriers?

Marketing

The investor will need to understand how you’re going to market your product or service.

  • What’s your marketing channels?
  • What’s your PR strategy?
  • What’s your social media strategy?
  • What’s the cost per acquisition of one customer?

Traction

A company with some sort of traction will receive extra points from the investor’s point of view.

  • Does the company have sales or users to date?
  • How can we leverage that traction?
  • What’s the main factor that lead to this traction?

Risks

In every new business there are risks. You need to know how to answer the following questions:

  • What are the main risks?
  • Are there any legal risks involved?
  • Are there any regulatory risks involved?
  • Are there any risks regarding the R&D or the product itself?

Exit Strategy / ROI

The investor needs to know when he sees a return on his investment.

  • What’s the most likable exit strategy?
  • When do you expect it to happen?
  • Who are the main companies that might be interested in buying the company?

Intellectual Property

For many companies, IP is the key to success. The investor will want to know:

  • What is the current IP of the company?
  • Did the company perform any searches for similar patent to verify it does not conflict with existing patents?
  • Is there any entity that can claim ownership on the company’s patents?

Financials

Investors need to understand the current financial situation of the company and its future financial plans. The entrepreneur must be ready to answer the following questions:

  • What’s the projections for the next 3 years?
  • What are the assumptions for these projections?
  • What’s the current financial situation of the company?
  • How much money is needed?
  • When will the company reach profitability?
  • What factors can cause delays in the projections?
  • How much options the company allocate to its employees?

Funding Round

  • How much money are you raising in this round?
  • What will it be used for?
  • What milestones will be achieved using this money?
  • Will existing investors participate in this upcoming investment round?
  • What’s the company valuation?
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