Investors decide quickly, and they decide by asking questions. Most of them are predictable. If you know what each question is really testing, you can answer with evidence instead of hope.
Below are the questions you are most likely to hear at pre-seed and seed, grouped by what the investor wants to find out.
Questions About the Problem
"Who exactly has this problem?" They are testing whether you know your customer. Name a specific group, not "small businesses". If you have an ideal customer profile, use it.
"How are they solving it today?" They want to know the real competition, which is often a spreadsheet or doing nothing. Show that you understand the workaround and why it falls short.
"How do you know it hurts?" Bring evidence: the number of customer interviews, quotes, people who paid or joined a waitlist. Opinions are weak; behavior is strong.
Questions About the Market
"How big is this?" They want a credible bottom-up number, not a top-down percentage of a huge market. Build it from customers × price. The TAM, SAM, SOM calculator helps you show the math.
"Why now?" Explain what has changed, in technology, regulation or behavior, that makes this possible or urgent today.
Questions About Traction
"What traction do you have?" Lead with the strongest real number: paying customers, revenue, active users or signed pilots. Say what period it covers. If it is early, say so and show the trend.
"How do you get customers?" They are testing whether growth can repeat. Name the channel that works today and what it costs, even if the numbers are small.
"What is your retention?" For early products, show whether people come back. A small group of loyal users is more convincing than a large group that left.
Questions About the Business
"How do you make money?" State your price and who pays it. If you are still testing pricing, say what you have learned so far.
"What do your unit economics look like?" At pre-seed they do not expect perfect numbers. They want to see that you know what it costs to win a customer and what that customer is worth.
"How much are you raising and what will it get you?" Give a clear amount, how long it lasts and which milestones it reaches. Investors fund the next proof point, not a vague plan. Check your burn rate and runway first.
Questions About You
"Why are you the right team?" Explain your link to the problem and what you have already done that others could not. This is founder-market fit.
"What happens if a co-founder leaves?" They are checking that founder shares vest and that ownership is clean. Have your cap table ready.
Questions About the Deal
"What valuation are you looking for?" Have a range that fits your stage and evidence. Use the startup valuation calculator to sanity-check it, and know whether you mean pre-money or post-money.
"Who else is investing?" Be honest. If you have commitments, say how much. If you do not yet, say who you are talking to.
How to Answer Well
- Answer first, then explain. Give the number or the direct answer in the first sentence.
- Use evidence. Every claim should point to something they could check.
- Say "I don't know yet" when it is true, then explain how you will find out.
- Do not argue. A tough question is a request for proof, not an attack.
- Write down what they asked. Repeated questions show you where your deck is weak.
The best preparation is to hear the questions before the meeting. Your pitch deck should answer most of them without you speaking, and the term sheet guide covers what comes after investors say yes.