There is something that is not continuous between the questions expressed by most angel investors with the actual questions they wanted to ask. The reason, rather than because they were afraid to ask, but rather because they have been pegged to look upon startup as a public company, or did not want to hurt the feelings of the founder.
The question they tend to be traditional and predictable, for example about the product, market fit, team, market size, and traction before investing money into your company. However, as time goes by is actually a lot of things beyond that they want to ask.
The first sequence of most of their attention when you are dealing with integrity. Every single investor you really want to answer this question is to ascertain whether you are honest? Are you going to use my money to gamble? Are you going to use my money for dinner with the family?
Angel investors want to sit together to ensure your honesty. When they ask about you, in fact they are really asking, “Will I run into legal trouble for you?”.
Most investors are honest with themselves that they can not evaluate the idea because they are not in the same room with you and not as smart as you. Technology companies like Airbnb, Facebook, Tesla, Instagram, and Uber, initially ignored by investors who can not evaluate the idea originally.
Therefore, you should explain in detail how the process of beginning an idea emerged and how you and your team process to form a real product.
Angel investors are most aware of their position was not the right person to evaluate your product. They just want to make sure how far away from your team’s willingness to create a product that can be useful to users and how to shape its marketing strategy.
They did not really want to know how good your product, because the product continues to grow each time. Even the business would potentially occur pivot.
“When I give you money, if you will dedicate all your time and energy to focus refund my money at the same time the success of this business?”. Then, angle investors will ask follow-up questions, “How do you spend your time? I really do not care about the details, but I would like to know your daily activities “.
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According to angel investors, if the business takes work 16 hours a day, but you do only 8 hours a day. This means that you do not provide integrity number 1 for this job.
Angel investors want you to gauge how to calculate this business through a simple financial mathematics, at the same time make sure you make the assumption that it can be proven or not.
You need to know how to determine the economic value of the product based on the calculation of Customer Acquisition Cost and Lifetime Value (CAC & LTV). Many founders who fail in this counting.
“Do the people you can work as a team? How does your team work? ‘. Many startups fail to walk because his team did not cooperate during the six to seven years, working 16 hours a day and six days a week.
“Is it physically, emotionally, and mentally you can survive for many years ?,” “When business falls, whether you are able to stand again for the tens times?”. You ought to be able to answer this question, because angel investors need to make sure you will not explode by themselves when hard times happen.
“Can you build a good work culture? Because of the quality of the workers you hire be an important factor to create a culture. “Through this question, angel investors wanted to make sure other people also like the way you work. If other people like the way you work, surely they will flock volunteered to join your team.
You need to realize that the angel investor usually also have to recall her own egoism is the investor. For that, you have to provide answers of all they say with full honesty, full of vision, and a good story.