Startup Funding Espresso -- How to Answer the Investor’s Questions

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In raising funding, the startup will meet with many investors to answer their questions.

So, how should the startup answer the investor’s questions?

First, listen to the question and answer it directly and to the point.

If the question requires a number, then give that number.

For example, if the investor asks how much revenue do you have, then answer with, “We have $200K of revenue so far this year”, or “We have $10K of monthly recurring revenue”.

Be careful with answering every question with a story, as this takes time and often misses the key information.

If the investor wants to hear the back story for a particular question they will ask. For example, “That sounds interesting. Tell me how you arrived at that model”.

The investor often has a list of questions to go through and a limited amount of time.

Not responding with direct and to-the-point answers lengthens the process.

Also, some investors may interpret the long and winding response as avoiding the answer which raises a red flag.

It’s best to be straight up.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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