Question

An investor comes to you wanting to invest in a chemical manufacturing company.

what are the main 7 questions you would ask him to gather information you need to start your inquiry?

Answer 1

Ans:

Main 7 Questions that should be asked to an Investor are:

1. Why are you willing to invest in our company? An Entrepreneur should know why the investor is willing to invest in his company instead of investing in any other country.
2. Do the Investor know the business, competitors, and industry in which they are investing? An entrepreneur should ask the Investor whether he/she know the kind of business they are doing, the competition they are facing and the kind of industry they are in.
3. What is the status of your fund? You want to know if the fund has enough "dry powder", to make investments of the size that you are seeking for your company.
4. What are your most successful investments? This is a way to identify other CEOs that have worked with this Investor and get their perspective about the contribution the Investor made to the success story.
5. How many investments do you make per year, and what is your typical investment size? It is important to know the amount that this particular Investor can contribute to the round.
6. How often do you lead financing rounds? Finding the lead investor for your financing is essential for completing a funding round. The lead investor plays the largest role in setting the pricing and terms for the round.
7. What are your standard terms and conditions? Deal terms and conditions are frequently just as important, and in some cases more important than valuation.