Quick Answer: What Kind Of Questions Do Investors Ask?

What questions do the sharks ask?

8 Questions You Need To Answer Perfectly Before Going On ‘Shark Tank’What are your sales.

This is always the first question.

What do you bring to the table.

Why do you need our money.

Why the big valuation.

Is your product unique.

How much debt do you have.

How much inventory do you have.

What are your costs?.

What makes a company attractive to investors?

A great company generates a profit by charging more than enough to cover its costs. Very often, a wide economic moat allows the business to 1) charge a premium for its products or services; 2) sell a high volume to customers; 3) control its costs and operate efficiently; or 4) do a combination of these.

What is the most important financial statement for investors?

income statementThe most important financial statement for the majority of users is likely to be the income statement, since it reveals the ability of a business to generate a profit. Also, the information listed on the income statement is mostly in relatively current dollars, and so represents a reasonable degree of accuracy.

Who is the most successful investor on Shark Tank?

Kevin O’LearyMost successful Shark Tank investments Kevin O’Leary and Lori Greiner have had the most successful investments from the show. Kevin invested in a company called GrooveBook, which sold for $14.5 million, whereas Lori saw her initial $150,000 investment grow Readerest to $8 million in revenue a year after airing.

What are the elements of pitch?

The 5 Must-Have Elements of a Flawless PitchAn attention-grabbing introduction. Make investors pay attention by telling a story. … A clear vision of a world with your company. Your job is to show investors how your company will improve lives. … A solid plan to achieve your vision. … A clear exit strategy. … Be prepared and remain engaging.

What are investors most interested in?

Investors are highly interested in key customers or vendors as well as the market size and your current position within the market. Make sure you value your business objectively. The type of investor you seek for your business will dictate which value points you highlight during the negotiations.

What is a fair percentage for an investor?

Angel investors typically want from 20 to 25 percent return on the money they invest in your company. Venture capitalists may take even more; if the product is still in development, for example, an investor may want 40 percent of the business to compensate for the high risk it is taking.

What does a 20% stake in a company mean?

A 20% stake means that one owns 20% of a company. With respect to a corporation, this means holding 20% of the issued and outstanding shares. It does not mean that one is entitled to 20% of the profits. Even if an early stage company does have profits, those typically are reinvested in the company.

Do investors get paid monthly?

Do investors get paid monthly? Investors can bypass the monthly income funds and, instead, invest in funds from which they can take a regular payout. Investors could also have dividends paid into a separate bank account, which then sends a regular monthly income to a current account.

What investors look for in startups?

Aligned for Success – A Guide to What Investors Look For in a StartupExecutive Summary. … Passionate Founders with Skin in the Game. … Traction. … Significant Market Size. … Product Differentiation/Competitive Advantage. … Team Members and Delegation. … Exit Strategy. … The X-factor.More items…

How do you ask an investor for money?

How to Ask Investors for FundingKeep your pitch concise and easy for the average person to understand.Stay away from industry buzzwords the investors may not be familiar with.Don’t ramble. … Be specific about your products, services, and pricing.Emphasize why the market needs your business.Build some credibility by sharing your relevant experience.More items…

Why do you want to pitch your business?

It is because every investor desires that the money they use to fund your business would earn those profits. The purpose of a successful pitch is to have investors willing to invest in your company. So, when you successfully deliver what an investor wants, you will have a truly compelling pitch.

What questions should the shareholder raise at the AGM?

15 Basic Questions for shareholders to ask at the AGMCurrent financial position? … Has the Board checked its figures – how was it done, show how it was robust?How has the Board minimised/limited/managed possible exchange rate fluctuations?Does the Board’s plan for the future need working capital – how will it raise it?More items…

How much should I ask investors for?

If your company is early stage and has a valuation under $1M, don’t ask for a $5M investment. The investor would be buying your company five times over, and he doesn’t want it. If your valuation is around $1M, you can validly ask for $200K–$300K, and offer 20–30% of your company in exchange.

What do investors look for in financial statements?

There’s four most common financial statements that investors wanna see. There’s a balance sheet, an income statement, statement of cash flows, and there may be a use of proceeds schedule. Sometimes, they don’t ask for that specifically, but be prepared to talk about that if they ask you the question.

What information do investors need?

Investors will ask if your company shows signs of growth and if you have plans such as issuing shares or borrowing money to stimulate growth. Your debt repayment plan should also be properly presented. Prove your business is capable of handling its financial obligations.

What do investors look for in a pitch?

The pitch deck should include details of who the people behind your business are, the problem you are trying to solve, your product or service which acts as the solution to that problem, traction, the current market and your competitors, as well as details of your business model and how any successful investment will …

How do you pitch on Shark Tank?

How to Pitch Your Product to the Sharks on Shark TankStart with a good product.Begin selling or pre-selling your product, and make a high amount of presells.Pitch your business in an email to the show, or attend an open call.Be ready to answer questions about your business and financials.

How long does a shark tank pitch take?

about 45 minutesPitches average about 45 minutes each, but have ranged from 22 to 100 minutes. Still, they’re edited into a segment roughly 11 minutes long, with repetitive questions or “minutiae” left on the cutting-room floor. Do the sharks really calculate companies’ valuations off the tops of their heads?

What does an investor want in return?

The bigger the better. In general, angel investors expect to get their money back within 5 to 7 years with an annualized internal rate of return (“IRR”) of 20% to 40%. Venture capital funds strive for the higher end of this range or more.