

Ask HN: I'm meeting with a potential investor. What questions should I ask him? - podman

My cousin, with whom I work on one of my startups, has been talking to a potential investor. I have yet to talk to, or meet, the investor, but the kinds of things my cousin has told me about him and the types of questions the investor has been asking lead me to believe that he might not really be qualified beyond just having a lot of money. I tried to find information about him online, but was unable to do so. I already see this as a red flag. I might be meeting with him today, finally, and was wondering what types of questions I should ask to properly vet him.<p>Here are some questions that I think might be helpful.<p>* What is your experience with investing in internet startups?<p>* In what other companies have you invested and have they been successful?<p>* Beyond monetary assistance, what else can you offer?<p>* What do you consider a successful "exit" for your investment?<p>* How hands-on would you want to be?<p>* How well do you understand our market?
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johng
I would ask him for a list of his previous investments so you can contact them
and ask them how he was to work with.

That's the most telling aspect, everything else can be a lie... but find out
how the people that have actually worked with him feel.

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podman
Thanks. This sounds like really good advice.

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owkaye
"... lead me to believe that he might not really be qualified beyond just
having a lot of money."

I would LOVE it if I could find an investor like this! Apparently you're
looking for a partner to help work in the business and not just an investor.
That's fine, but some entrepreneurs do better when the investor ONLY provides
working capital -- and stays away from the business otherwise.

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podman
Well, yes, I'm sure that is the case for some people. This, however, is my
first startup and I don't really have the experience necessary to do
everything on my own. I am worried that he will want to meddle and not have
the experience or expertise to help in any meaningful way and would most
likely cause problems.

