What are the right questions a business founder should ask a venture capitalist or angel investor?
Have they invested in a startup before if so how many and how have they done? This shows that if they have a 75% success rate in their investments and they like your business this should tell you that your business is probably very good. If they don’t this should also tell you that your idea needs more validation and I would ask them what they would recommend.
Quick questions before you sign anything:
- What are they getting in return for their investment?
- What are the terms? (interest rate, payment plan, etc.)
- Are they getting any ownership?
