Updated: Apr 23
Investing for Nursepreneurs: 3 Questions Nurse Entrepreneurs should ask their Investors. Every investor by the end of the meeting will make up his or her mind. If the investor is interested in taking the next steps, you need to ask about the whole investment process. If the VC is engaged, you should be meeting with more and more partners in the firm as the process unfolds.
It is important for Nursepreneurs to Ask how exactly does this particular investor help and ask for specific examples involving companies the investor backed. You don't necessarily need to connect with them after your firms meeting with the investor, but it is a good question to ask and see what the answer is.'
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The Most Important Questions to ask:
“What is your investment process, and how long does it take?
If the investor is interested in taking the next steps, you need to ask about the whole investment process. The process will vary widely depending on the type of investor.
Some angels like to co-invest with others, and that often prolongs the process. Typically, a formal angel group will assign a team of angels to an investment committee for each deal. You will need to meet with them at least a few times and then, if things go well, present to the entire angel group.
The process for Micro VC and VC firms varies, but generally takes 3-4 meetings to get a positive decision. Every firm meets regularly to evaluate the deal flow. When you hear that you will be talked about during the partner meeting this week, in general, this a positive thing, but be ready for a quick NO coming out of that meeting. If the VC is engaged, you should be meeting with more and more partners in the firm as the process unfolds. For larger checks, you will be invited to present at a partner meeting. That would be a critical meeting for a YES decision.
What is the last company backed, and why?
This is a simple but relevant question. You are testing for how quickly the answer comes, how enthusiastic the investor is and when was the investment made.
It can be quite telling one way or another. Has it been a really long time since last investment? If so, what does it mean? Is it that the investor has a high bar or is it that they don’t have capital left to invest this year? Ask about the number of planned investments question and you will have the answer.
You also want to hear the WHY. What made the investor write the check? Was it an amazing founder, vision, market, etc? Listen carefully to the answer, as it should be helpful to figure out what the investor will look for in your startup. This is critical for the Nursepreneurs as it can literally make or break your start up funds.
Whats the Check Size ?
Knowing the check size helps influence the timeline and, frankly, the effort you put into this particular pitch. For example, if you are raising a $1MM round you can’t spend a ton of time with people who write $25K checks. You simply won’t be able to get to the finish line if you focus on those.
Oftentimes you will hear a range. An angel can say I invest $25K-$200K, or a VC invests anywhere from $300K to $5MM. Ranges, in general, aren’t great because they lack clarity. There may be complexity or another message behind them. For example, an angel who says $25K-$200K may only invest $25K personally and then syndicate out the rest.
Similarly, when a VC names a range, it might actually mean that they do seed exceptionally rarely. Find out their minimum on investing before you spend your time.
Courtesy of techo