Your business plan, pitch deck with correct numbers and projections, and preferably a proof of concept enables you to gain credibility just enough to start looking for investors and approaching the relevant ones.
When you, as a founder, approach an interested investor, he or she would want to know more about you and your company. This is where you have to go through an interview, just like one for a job. You will be judged not only on your company and operations or technology, but also on your vision, domain knowledge, market/social awareness and most importantly your personality as a whole. Added to all this, it is not enough to just give an impression of your belief in your own idea/business/company, but the conviction and reasoning has to be supported by facts and some proof of concept.
Thus, the questions asked by a potential investor could be straight-forward, tricky or even ambiguous. But you need to be fully prepared and have definitive answers to all of these. Here are some typical questions asked, see if you have the answers to them!
Tell us the thing that makes your company unique?
Justify your mission. Why do you care about this?
Have you invested your own money? If not, why not?
Why does your company have high growth potential?
What relevant domain experience does the team have?
What have you learned from early versions/executions of your product or service?
What advantages does your competition have over you?
What is your customer-acquisition cost, and how did you calculate it?
What is the projected lifetime value of a customer?
What early traction has the company gotten (sales, traffic to the company’s website, app downloads, etc., as relevant) and what sort of marketing have you done to achieve it?
What legal risks, regulatory risks and product liability risks do you have?
Have you evaluated violations of any third party rights that your company’s intellectual property could cause?
Would any prior employers of a team member have a potential claim to the company’s intellectual property?
Will there be any claims by a party claiming to be a co-founder?
Justify your projections and any assumptions which you have made?
How much equity and debt has the company raised and how much is anticipated in future; what is the capitalization structure?
How much of a stock option pool is being set aside for employees?
What is the company’s desired pre-money valuation?
What milestones will this round of financing help you achieve and what is the planned usage of these funds?
What is your exit strategy? Who are likely acquirers if that's the case, and why?