20 Questions

Questions to Ask Startup

Critical questions to ask a startup before joining as an employee, investor, or partner—covering product-market fit, funding runway, team, culture, equity, and viability.

1

What problem are you solving, and who is your target customer?

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Why this works

Core product-market fit question—clarity here determines viability.

2

What's your current traction—revenue, users, growth rate?

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Why this works

Reveals whether the business is gaining momentum or struggling.

3

How much runway do you have, and when do you plan to raise more funding?

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Why this works

Critical for job security and operational stability.

4

Who are your competitors, and what's your competitive advantage?

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Why this works

Assesses market positioning and defensibility.

5

What's your business model, and how do you make money?

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Why this works

Path to profitability is essential—many startups lack this.

6

Who are the founders, and what's their track record?

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Why this works

Founder experience and relationships predict success more than ideas.

7

What is the cap table, and how is equity distributed?

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Why this works

Reveals ownership structure and whether early employees get meaningful equity.

8

What are the key milestones for the next 6-12 months?

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Why this works

Shows strategic focus and realistic goal-setting.

9

What's your biggest risk or existential threat right now?

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Why this works

Honest answer reveals self-awareness and transparency.

10

How would you describe the company culture and working style?

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Why this works

Culture fit matters immensely in small, intense startup environments.

11

What does the equity package look like, and what's the vesting schedule?

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Why this works

For employees—understand stock options, strike price, and dilution.

12

What percentage of the company does my equity represent on a fully diluted basis?

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Why this works

Absolute number of shares means nothing without knowing total shares.

13

What happens to my equity if the company is acquired or goes public?

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Why this works

Liquidation preferences and exits affect whether your equity is worth anything.

14

What's your customer acquisition cost and lifetime value?

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Why this works

Unit economics determine whether growth is sustainable or burning cash.

15

How do you prioritize product development and feature requests?

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Why this works

Shows whether they're customer-driven or founder-driven.

16

What are the expectations for work hours and work-life balance?

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Why this works

Startups can be intense—understand the reality upfront.

17

What benefits, salary, and perks do you offer compared to market rate?

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Why this works

Startups often pay below market—equity should compensate for risk.

18

Who are your investors, and how involved are they?

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Why this works

Investor quality and support matter—smart money adds value beyond capital.

19

What would cause you to pivot or shut down, and how would you handle that?

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Why this works

Shows contingency planning and founder integrity.

20

Why should I join your startup instead of a more established company?

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Why this works

Forces them to articulate the unique opportunity and sell you on the vision.

Evaluating Startup Opportunities

Expert tips and techniques for getting the most out of these questions.

Best Practices for Due Diligence

Do Your Own Research

Talk to current and former employees, check Glassdoor, research the market—don't rely only on what they tell you.

Get Equity Details in Writing

Verbal promises mean nothing—review the stock option agreement before accepting.

Assess the Team, Not Just the Idea

Great teams can pivot to success; weak teams fail even with great ideas.

Key Risk Factors to Evaluate

Startup Risk Checklist

1
Product-market fit: Do customers love it and pay for it?
2
Financial runway: Can they survive 12+ months without new funding?
3
Team strength: Do founders have domain expertise and grit?
4
Market size: Is the addressable market large enough for venture returns?
5
Competition: Can they win against established players?
6
Unit economics: Do they make money on each customer?

Common Pitfalls

Overvaluing Equity in Early-Stage Startups

Most startups fail—don't sacrifice salary for equity unless you can afford the risk.

Ignoring Red Flags in Founder Dynamics

Co-founder conflict is a top reason startups fail—observe team dynamics closely.

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