Are you happy and glad that you have just found a person who wants to invest in your company? But wait, there’s a lot of things you should consider.
Many business owners forget to consider their investors as they often are so happy that someone believes in one’s business. You do not want to end up that you have a control freak who also is a coward and intrusive.
What exactly is a venture capitalist? Well, a venture capitalist makes money by investing money in companies in need and remember that they usually expect to make big profits.
We have listed the questions you should ask before choosing your venture capitalist!
- First always ask why he chooses to play invest in your business?
- 2nd What resources other than money, the investor who can help the business forward and how will that person that you and use it?
- 3rd What part of this company, the investor believes most?
- 4th What other kind of business he or she has previously invested in?
- 5th Ask for references so you can check with other companies what they thought of the investor!
- 6th How quickly the investor expects to get a return on your investment?
- 7th How would it affect the investor if he or she lost money?
- 8th Please ask even if they are willing to speak up and be realists when they discover that you are headed in the wrong direction.
- 9th What do they look ahead to the decisions taken and by whom?
- 10th What role do they have in the company?