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Advanced Investor Questions

Updated: Dec 2, 2024


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Product & Technology Questions

  1. How defensible is your technology, and what barriers to entry exist for potential competitors?

  2. What is your technical debt, and how do you plan to address it as you scale?

  3. How does your product architecture support scalability and future growth?

  4. Have you built any proprietary technology that would be difficult for others to replicate?

  5. What’s your product roadmap for the next 12-24 months, and how do you plan to prioritize features?

  6. How do you handle data privacy and compliance with regulations like GDPR or CCPA?

  7. What are the risks of obsolescence for your technology, and how do you mitigate that risk?

  8. How is user feedback incorporated into your product development cycle?

  9. What happens if a key part of your tech stack becomes unavailable? How quickly can you adapt?

  10. How does your product or technology align with emerging industry trends?


Market & Competitive Positioning

  1. What is your plan for maintaining your competitive advantage as the market evolves?

  2. How do you plan to handle new entrants with significant funding in your market?

  3. Can you explain how market dynamics might shift in the next 5-10 years, and how you're positioned to capitalize on those changes?

  4. What partnerships or alliances do you have, and how do they strengthen your position in the market?

  5. How do you plan to defend your market share if a dominant player moves into your space?

  6. What would be your response to a price war in your market?

  7. How are you tracking changes in consumer behavior, and how might those changes affect your product?

  8. Can you explain the network effects or economies of scale that will support your long-term competitive advantage?

  9. How do you plan to diversify your offerings if the market begins to saturate?

  10. What will your market look like when your business matures, and where do you see yourself in that landscape?


Growth Strategy & Scalability

  1. How do you plan to scale your customer acquisition efforts while maintaining or reducing your CAC?

  2. What are the biggest operational challenges you expect to face as you scale, and how will you address them?

  3. Can you explain your strategy for scaling internationally, including regulatory and cultural challenges?

  4. What’s your approach to balancing rapid growth with maintaining product quality and customer satisfaction?

  5. As you scale, how will you prevent customer churn, especially when onboarding large numbers of new users?

  6. What specific operational processes have you put in place to ensure scalability without sacrificing efficiency?

  7. How do you manage the risks of overextending your resources as you grow quickly?

  8. What have been the biggest scaling bottlenecks in similar companies in your industry, and how are you prepared to overcome them?

  9. How do you plan to scale your team without diluting company culture or losing focus?

  10. How will you manage infrastructure and capacity costs as your user base grows rapidly?


Business Model & Economics

  1. How sustainable is your revenue model if market conditions change or become more competitive?

  2. How do you plan to diversify revenue streams to mitigate risk from dependence on a single source?

  3. What are your margins now, and how do you expect them to evolve as the business scales?

  4. How sensitive is your business model to external economic changes, such as inflation, supply chain disruptions, or regulation changes?

  5. How do you model customer lifetime value (CLV), and how do you expect it to change as you scale?

  6. How have you stress-tested your business model for downside scenarios, such as economic downturns or major disruptions?

  7. What are your assumptions for revenue growth, and what would need to happen for those assumptions to be invalid?

  8. Are there opportunities to increase profitability through operational efficiencies, pricing adjustments, or new services?

  9. How are you balancing short-term revenue goals with long-term strategic objectives?

  10. How do you manage cash flow when scaling rapidly while still investing in growth?


Team & Leadership

  1. How do you manage the tension between rapid scaling and maintaining a high level of company culture and employee engagement?

  2. What are the key leadership hires you will need to make as the company grows, and when do you plan to make them?

  3. How do you ensure that your team stays agile and innovative as the company matures?

  4. How are you managing internal alignment across teams (product, marketing, sales, etc.) during rapid growth?

  5. What have been the most challenging leadership decisions you've had to make, and what did you learn from them?

  6. How do you handle conflict resolution within the leadership team, especially under high-pressure situations?

  7. How will your roles and responsibilities change as you transition from a founder-led company to a more structured leadership model?

  8. What’s your succession plan for key leaders in case they leave unexpectedly?

  9. How do you ensure accountability across teams as you scale, particularly when scaling remotely or globally?

  10. How do you evaluate and develop leadership potential within your existing team?


Risk Management & Strategy

  1. What are the biggest strategic risks facing your business, and how are you preparing for them?

  2. How do you monitor and assess risks related to your supply chain or distribution network?

  3. If your primary growth strategy fails, what is your contingency plan?

  4. What’s your disaster recovery plan in the event of a significant data breach or system failure?

  5. What geopolitical risks could impact your business, and how are you mitigating them?

  6. How do you plan to hedge against currency risk when expanding internationally?

  7. What is your plan if you face a significant customer churn or user drop-off in a short period?

  8. How do you assess and manage regulatory risks, particularly in highly regulated industries or markets?

  9. How resilient is your business to a major economic downturn or recession?

  10. How are you addressing environmental, social, and governance (ESG) risks and trends that could impact your company?


Investor Relations & Exit Strategy

  1. What type of investors are you targeting in future funding rounds, and why?

  2. How do you manage investor expectations, particularly when growth doesn’t match projections?

  3. What metrics are most important for investors to track as you grow?

  4. How are you preparing the company for future rounds of funding?

  5. What role do your investors play beyond providing capital, and how do you manage those relationships?

  6. How do you ensure that your cap table remains clean and attractive to future investors?

  7. What type of exit are you aiming for, and in what time frame?

  8. How are you preparing for potential acquisition interest from competitors or larger companies?

  9. How do you align your long-term strategic goals with the expectations of your current and future investors?

  10. What would make you consider or reject an acquisition offer?


Traction, Metrics & Financial Projections

  1. What are the most important KPIs you're tracking right now, and how do they inform decision-making?

  2. How have your growth metrics evolved over the last 12 months, and what are your projections for the next 12 months?

  3. What key assumptions are driving your financial model, and how do you adjust if those assumptions prove wrong?

  4. What metrics do you use to track customer success and satisfaction, and how does that impact retention?

  5. What is your payback period for acquiring a customer, and how do you expect that to change as you scale?

  6. How do you calculate your sales pipeline, and what assumptions are built into that model?

  7. How accurate have your financial forecasts been in the past, and what were the biggest deviations?

  8. How do you handle unpredictability in revenue, especially in volatile markets or during seasonal fluctuations?

  9. How are you adjusting your marketing spend based on customer acquisition performance?

  10. What is your strategy for managing working capital as the business grows?


Legal & Regulatory Compliance

  1. How do you handle intellectual property (IP) protection across different regions?

  2. What patents or trademarks do you have, and how defensible are they?

  3. How do you handle cross-border data compliance for customers in different countries?

  4. What legal challenges have you faced so far, and how did you overcome them?

  5. What specific regulations affect your business, and how are you ensuring compliance?

  6. How are you preparing for any future legal or regulatory challenges that might arise as your market evolves?

  7. How do you manage employee and contractor contracts to mitigate legal risks?

  8. What’s your plan for navigating regulatory hurdles in highly regulated markets like healthcare or finance?

  9. How do you ensure proper tax compliance in different countries or regions you operate in?

  10. What role does legal due diligence play in your partnership and acquisition strategies?


Future Strategy & Vision

  1. What’s your vision for the company in 5-10 years, beyond financial growth?

  2. How do you plan to stay innovative as your company grows and the market evolves?

  3. How will AI, automation, or emerging technologies impact your product or business model in the future?

  4. What do you think is the next major disruption in your industry, and how are you positioning your company to benefit?

  5. How are you preparing to pivot if significant market changes occur in the next 3-5 years?

  6. How will you ensure that your company remains mission-driven as it scales?

  7. What role do partnerships and alliances play in your long-term strategy?

  8. How are you planning for future market consolidation, either as an acquirer or an acquisition target?

  9. What impact do you want your company to have


 
 
 

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