30 Questions Angel Investors Will Ask You
When pitching a startup to angel investors, the goal is to receive questions. A lack of questions indicates a flat and uninterested pitch. Therefore, be prepared to answer questions and anticipate having questions to answer!
Embrace interruptions
Contrary to business plan competitions that require judges to listen quietly for a set amount of time before asking questions, angel investors expect interruptions.
Most angel investors consider themselves busy and insightful, valuing their worth as both listeners and speakers. Therefore, few pitches go uninterrupted through a slide deck without investors interjecting with questions. While my group typically follows a 20-minute pitch followed by 20 minutes of Q&A format, we frequently deviate from this structure.
My advice to pitchers is to appreciate and enthusiastically answer the questions that interrupt your pitch. If these interruptions throw off your planned sequence, consider whether startups are right for you. It is not uncommon to see startup founders become frustrated or indignant when their sequence is disrupted. Angels may be understanding if a friendly request to suspend a question momentarily is made.
The best presenters are able to switch topics seamlessly, address questions as they arise, and return to the planned structure while noting any changes. Listeners appreciate when someone can navigate changes gracefully, particularly in the unpredictable world of startups.
Ideally, your main pitch should answer these core questions:
The following list of questions should be answered within your main pitch. If any of these questions are asked separately, it may indicate that your pitch is slow-paced or has an awkward flow. Embrace any spontaneous interest and adjust the flow accordingly. It is important to plan to answer all of these questions within your pitch deck.
What problem or want are you solving?
What types of people, groups, or organizations have this problem? How many are there, where are they, and how do they currently address it?
How are you different?
Who are your competitors? How do you differentiate yourself from them?
How will you generate revenue?
How will you generate returns for your investors?
How quickly can you scale your business? Can you increase volume without significantly increasing headcount?
What is proprietary about your business? How do you plan to defend it?
What traction have you gained?
What milestones have you achieved?
How will you market and promote your business?
How will you close sales?
How will you get started?
How will you allocate investors’ funds?
What qualities does your team possess that make them suitable for this business?
Please note that this list is not exhaustive or comprehensive. It is essential to have a deep understanding of your business and determine what other questions are relevant.
Please remember that it is crucial to be concise and impactful in your pitch while maintaining clarity and readability.
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I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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