If Investors ask you 5 questions Startups should ask them 15.

I met an investor for my organisation. The most important thing the investor said to me was that why the name of our organisation started with "O". Its not desirable. We gave him many examples where companies have multiple Os. The meeting also fell apart as he could not relate our technological solutions and could not visualize its future and our vision. It made us alert though we dont have an investor till date.

Now we all know what investors will ask from startups. But my question is who should have the upper hand in the discussion  and how a start up should evaluate an investor.Lets keep in mind while investor is looking to invest and help the startup to scale up and in turn  earn money on the other hand startup is giving the investor a chance to invest and make money through the innovation of the company.

So what all a start up should look into an investor:

• The educational back ground  of the investor and if thats matching with the line  of business of the startup. Investor may have money and may  be successful business man but what all values does the investor bring on the table beside money for the start up.
• Startup should analyse how is investor going to connect with various people for growth of business of the startup. Hence you must analyse in which line of business or profession the  prospective investor was.
• Starup should analyse the level of interference of the investor and whether it coincides with the vision of the startup. This will help to analyse the patience of the investor for gaining profit or is the investor willing to grow with the startup.
• The exit route of the startup and investor should be clearly defined and mutual expectations should be clearly set and documented.
• How much time will investor give in the office of the startup to brain storm and understand the real issues and give solutions or investor will always call the co-founders to explain the position of his investment. Lookout  for the attitude.

Last honest suggestion is develop the culture to sign NDA before any discussion with anybody. There are few organisations who will take the business plan luring  start up for investment without signing NDA. Dont surrender to the fact that money is required for scaling up of start ups and hence fall in line with prospective investors.

You all may have heard of famous Dr. Amar Gopal Bose of Bose Corporation. He never made his company public listed as he thought his organisation cannot pursue R&D as investors will look for quick results.

Dont forget that its your company and its your vision. Have believe on your vision. Dont make it run on vision and will of an investor. Make it an win win discussion.