Good vs Bad Answers to Questions

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In fundraising the investor will ask the startup many questions.

The investor is often limited in their time and must go through a series of questions quickly.

It’s best to answer the question directly and only the question asked.

It’s not a good idea to give the full story to every question as that takes time and limits the number of questions the investor can ask.

Use the PREP model in answering investors questions.

PREP stands for Point, Reason, Example, and Point

Here’s an example:

Point: Our startup is the first to market with a product to solve the throughput problem in data analytics.

Reason: We have a superior team that has been working on this problem for five years.

Example: Our algorithm increases data throughput by a factor of 10X.

Point: We’re able to provide answers to queries at an order of magnitude faster than the competition.

This answers the question directly and provides not only the answer but why it’s valuable.

Consider using the PREP model in your pitch to investors.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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