7 Questions To Ask Investors Before Exchanging Wedding Rings

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Hey,

I see a lot of founders who are afraid to meet investors.

This fear is real. They think they will not get funded.

As a result, they enter pitch meetings with insecurity and submission instead of authority.

Or worse, investors don’t respond fast enough, and founders go into begging mode.

The moment the investor feels this, it's game over

And before you know it, you are taking advantage of and end up with a shitdeal.

But in my opinion, if your company is worth investing in,

You invested time in crafting a compelling opportunity.

You have nothing to be afraid of.

𝗜𝗻𝘀𝘁𝗲𝗮𝗱 𝗙𝗨𝗡𝗗𝗥𝗔𝗜𝗦𝗘 𝘄𝗶𝘁𝗵 𝗽𝗿𝗶𝗱𝗲 and 𝗟𝗲𝗮𝗱 𝘄𝗶𝘁𝗵 𝗮𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝘆.

You can be rest assured that Intacart Founder, Apoorva Mehta that IPO’d a few weeks back has led his f͟u͟n͟d͟r͟a͟i͟s͟e͟ ͟w͟i͟t͟h͟ ͟c͟o͟n͟s͟i͟d͟e͟r͟a͟t͟i͟o͟n͟,͟ ͟c͟o͟n͟v͟i͟c͟t͟i͟o͟n͟ ͟a͟n͟d͟ ͟a͟u͟t͟h͟o͟r͟i͟t͟y͟.͟ ͟

Hence, I recommend you, before accepting any deal, run a DD on your investors

𝗧𝗵𝗶𝘀 𝘄𝗶𝗹𝗹 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂 𝘁𝗼 𝗹𝗼𝗼𝗸 𝘀𝘁𝗿𝗼𝗻𝗴!

Just as investors do due diligence on you, You are allowed to run your due diligence on them

𝗦𝗼 𝗵𝗲𝗿𝗲 𝗮𝗿𝗲 𝟳 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝘁𝗼 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂 𝗱𝗲𝗰𝗶𝗱𝗲 𝗶𝗳 𝘆𝗼𝘂𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗶𝘀 𝘄𝗼𝗿𝘁𝗵 it.

1. 𝘏𝘰𝘸 𝘮𝘶𝘤𝘩 𝘤𝘢𝘱𝘪𝘵𝘢𝘭 & 𝘵𝘪𝘮𝘦 𝘥𝘰 𝘺𝘰𝘶 𝘩𝘢𝘷𝘦 𝘭𝘦𝘧𝘵 𝘪𝘯 𝘺𝘰𝘶𝘳 𝘧𝘶𝘯𝘥?

You want to ask this question to explore if they have funds left for follow-up investments.

2. 𝘐'𝘮 𝘱𝘭𝘢𝘯𝘯𝘪𝘯𝘨 𝘵𝘰 𝘤𝘭𝘰𝘴𝘦 𝘵𝘩𝘪𝘴 𝘳𝘰𝘶𝘯𝘥 𝘪𝘯 "𝘹" 𝘥𝘢𝘺𝘴. 𝘐𝘴 𝘵𝘩𝘪𝘴 𝘢 𝘵𝘪𝘮𝘦𝘭𝘪𝘯𝘦 𝘺𝘰𝘶 𝘤𝘢𝘯 𝘤𝘰𝘮𝘮𝘪𝘵 𝘵𝘰𝘰.

You want to ask this question to make sure your timeline is aligned with theirs.

3. 𝘏𝘢𝘷𝘪𝘯𝘨 𝘭𝘦𝘢𝘳𝘯𝘦𝘥 𝘮𝘰𝘳𝘦 𝘢𝘣𝘰𝘶𝘵 𝘰𝘶𝘳 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴. 𝘞𝘩𝘦𝘳𝘦 𝘥𝘰 𝘺𝘰𝘶 𝘴𝘦𝘦 𝘺𝘰𝘶𝘳𝘴𝘦𝘭𝘧 𝘰𝘧𝘧𝘦𝘳𝘪𝘯𝘨 𝘴𝘶𝘱𝘱𝘰𝘳𝘵?

Discover how you can compound their capital with introductions, mentorship.

4. 𝘏𝘢𝘷𝘦 𝘺𝘰𝘶 𝘧𝘢𝘤𝘦𝘥 𝘢𝘥𝘷𝘦𝘳𝘴𝘪𝘵𝘺 𝘪𝘯 𝘰𝘯𝘦 𝘰𝘧 𝘺𝘰𝘶𝘳 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵𝘴 𝘢𝘯𝘥 𝘩𝘰𝘸 𝘥𝘪𝘥 𝘺𝘰𝘶 𝘥𝘦𝘢𝘭 𝘸𝘪𝘵𝘩 𝘵𝘩𝘪𝘴?

Are they pricks or deeply invested in you and their investment.

5. 𝘊𝘢𝘯 𝘺𝘰𝘶 𝘴𝘩𝘢𝘳𝘦 𝘮𝘦 𝘢𝘯 𝘦𝘹𝘢𝘮𝘱𝘭𝘦 𝘰𝘧 𝘺𝘰𝘶𝘳 𝘴𝘵𝘢𝘯𝘥𝘢𝘳𝘥 𝘵𝘦𝘳𝘮 𝘴𝘩𝘦𝘦𝘵?

See this like a prenup. You want to be sure that ones you reach the deal table, you aren't surprised by ridiculous terms.

6. 𝘞𝘰𝘶𝘭𝘥 𝘺𝘰𝘶 𝘮𝘪𝘯𝘥 𝘴𝘩𝘢𝘳𝘪𝘯𝘨 𝘵𝘩𝘦 𝘯𝘢𝘮𝘦𝘴 𝘰𝘧 3 founders you’ve backed?

Reach out to other founders to check in how they experienced their involvement

7. 𝘈𝘳𝘦 𝘺𝘰𝘶 𝘱𝘭𝘢𝘯𝘯𝘪𝘯𝘨 𝘵𝘰 𝘪𝘯𝘷𝘦𝘴𝘵 𝘪𝘯 𝘧𝘰𝘭𝘭𝘰𝘸-𝘶𝘱 𝘳𝘰𝘶𝘯𝘥𝘴?

Is this a one-shot-investment or will they follow on. For future rounds its nice to know you can fill up your round with 25% of old investors.

So take the lead. Hope this is helpful

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