How to Interview an Investor
Finding the right investor is a crucial step for any startup. The right match will help shape the course of a company for years to come. The interview process is the first opportunity for entrepreneurs to get meet an investor and figure out if they are an appropriate match.
To be successful in the interview process for a role such as analyst in investor relations is to possess a combination of financial knowledge and communication skills. The most successful candidates are able to explain complex financial information and write stories about investments that establish trust with the stakeholders.
Interviewers often ask questions related to your experience creating and implementing investor relations strategies for public and private companies. Your answer should demonstrate that you know the needs and desires of investors, and how you can tailor this link your presentations to suit the needs of each investor.
Investors will also ask you whether you can spot warning signs in deals, as well as how well you assess the risk-reward ratios of investments. You should be able to give examples of how you have evaluated market trends, researched competitive market players and analyzed valuations.
Understanding the expectations of an investor is essential to a successful relationship. For example when an investor wants regular contact with portfolio companies but isn’t able meet face-to face frequently, the partnership might not work out. It’s essential to know whether the investor has specific requirements regarding board representation or how involved they’d like to be in their investment decisions.