Startup Funding Espresso -- How to Answer the Investors 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\u2019s 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, \u201cWe have $200K of revenue so far this year\u201d, or \u201cWe have $10K of monthly recurring revenue\u201d. 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, \u201cThat sounds interesting. Tell me how you arrived at that model\u201d. 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\u2019s 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\u2019s go startup something today.-----For more episodes from Investor Connect, please visit the site at: Check out our other podcasts here: For Investors check out: For Startups check out: For eGuides check out: For upcoming Events, check out For Feedback please contact info@tencapital.group