When you`re ready to start raising your next round of funding for your startup, you want to be prepared for any questions or concerns investors may have. For investors, investing in a startup is a major risk. With over 80-90% of startups failing early, it`s no surprise that investors will want to know thorough details about your startup before moving forward and agreeing to provide you funding. Here are 20 of the top questions investors will ask you as a founder about your startup.

20 Questions Investors Will Likely Ask Startups When Raising Capital

Building a startup starts with an idea to solve a problem that exists in the market today. While many founders partner with a co-founder, it`s not always an option or preferred. Taking on growing and raising funds for your business can be daunting but working with a co-founder has its own challenges.

Can I Raise Capital as a Solo Founder?

When you`re getting ready to raise money for your startup, investors are going to want to know the details of your progress and growth to date. One of the primary things investors look at is the current traction of your startup to date. To demonstrate your traction, you have to understand what it is and be able to communicate your progress with potential investors. But what if your startup doesn`t have any traction so far?

Can I Raise Money if my Startup Has No Traction?

We all know startup companies are at the heart of many unique and innovative ideas. Whether it`s a new piece of technology, an app to make our lives easier, or a new business idea – startup companies are the ones that bring these ideas into the world. But as anyone who has tried to start a company knows, it`s no easy task. You must have the right team, an innovative product or service, and the ability to see your idea through from start to finish. And one of the biggest challenges you will face is attracting angel investors. To help you out, we wrote an in-depth blog post on What Do Angel Investors Look For In A Startup, so you know exactly how to present your company to angel investors. We will also provide tips on attracting angel investors to your startup company as you read through it.

What Do Angel Investors Look For In A Startup

If you want to raise capital from angel investors or venture capitalists for your startup, you want to ensure you have a solid elevator pitch to achieve your goals. An elevator pitch is a short description or professional introduction of your startup. It is essential in the process of fundraising. A compelling elevator pitch can help you start conversations with prospective investors and can convince them to want to learn more about your company.

8 Hacks to Refine and Perfect Your Startup Elevator Pitch

Raising money as a founder requires a lot of research and preparation. You have to create a pitch deck, diligently research and prepare data, and determine your valuation. And once all of that is complete, it`s time to reach out to potential investors to start pitching. But how do you know where to start?

How to Build an Investor Database for Your Pitch?

Raising funds is a complex process that can be one of the most challenging parts of being a founder. Before you begin your fundraising efforts, you need to determine how much money you need to raise. To do that, you need to calculate your startup valuation. Startup valuation is one of the most important things to know when you begin to reach out to investors to raise capital.

Startup Valuation: How to Determine How Much Money You Should Raise for Your Startup

For many startup companies, attracting investment is key to getting off the ground. In recent years, there has been an increase in the number of startups seeking funding from investors. It`s no secret that many startups fail. In fact, about 90% of startups don`t make it past their first year. So, how do investors make money from startups?

How Do Investors Make Money From Startups?

Startups are a great place for individuals who are passionate about their work and want to make a real impact in their industry. In the early days of a startup, there is often little to no money coming in. This can make it difficult to pay employees, especially when those employees are critical to the company`s success. So, how do startups pay their employees?

How Do Startups Pay Their Employees?

In recent years, the number of startups has exploded. With more and more companies popping up, job applicants have also increased. So, the question of whether or not they conduct background checks has become increasingly relevant.

Do Startups Do Background Checks?

Founders have a lot to consider when developing their startups. One key document founders should consider incorporating is a shareholder agreement. While it may not be necessary before you begin your funding rounds, a startup shareholder agreement helps you organize and plan out details for your future startup business relationships. Having a startup shareholder agreement prepared in advance can help you attract interested investors and allow you to carefully plan out your company`s future.

What is a Startup Shareholder Agreement and Why You Should Include Them as a Founder

Finding the perfect investor in any funding stage can be stressful. You have to create a comprehensive list of potential investors, create a pitch deck with compelling stories and accurate data, and then you actually have to pitch. Once an investor is interested and wants to move on to the next steps, it`s time to move on to the next phase of raising funding: due diligence.

The Due Diligence Checklist – Guide for Founders

In the beginning stages of a startup, you need capital to begin building your business. Funds are essential to building products, developing ideas, building prototypes, managing web development, and building a team. Many startups, in fact, over 1/3 of startups, get their funding from friends and family. Other founders choose to go a more traditional funding route and opt to look for funding from angel investors.

Friends and Family Investment Round vs. Angel Investor Round: Where to Start?

The short answer is - A Chief Marketing Officer (CMO) is responsible for the overall marketing strategy of the startup. He ensures that your company`s vision and mission reach the right audience and generate the desired impact.