The Toughest Investor Questions on Your Numbers (and How to Answer Them)

Most pitches aren’t lost on the deck. They’re lost in the Q&A, when an investor asks a numbers question and the founder hesitates. Here are ten of the toughest questions, and what a strong answer looks like.

1. “What’s your contribution margin after marketing?”

Don’t answer with gross margin. Give your margin after product cost, shipping, payment fees, returns, and marketing, ideally by channel.

2. “What happens if your CAC doubles?”

This tests whether your business survives stress.

Numbers in this example are illustrative.

Your contribution per order is ₹636, CAC is ₹700, and customers order 2.2 times a year, so 12-month LTV is ₹1,399 (LTV to CAC of 2.0x). If CAC doubles to ₹1,400, the ratio drops to 1.0x: you only break even per customer.

A strong answer: “We’d break even per customer, so we’d shift spend to retention and our lower-CAC channels. Here’s the scenario in our model.”

3. “Why will CAC not rise as you scale?”

The honest answer is that it probably will. Show that your model already assumes rising CAC, and that the business still works.

4. “What’s your repeat rate, and how do you measure it?”

Answer with cohort data: of customers acquired in a given month, what percentage ordered again within 90 days and 180 days.

5. “How much of your revenue comes from one channel or one product?”

Concentration is a risk. If one marketplace or one hero SKU drives most sales, say so, and explain your plan to diversify.

6. “What’s your cash runway today?”

Know this to the month, using projected (not just current) burn.

7. “Why do you need exactly this amount?”

Your ask should come from your model: the cash shortfall at your lowest point, plus a buffer, tied to milestones.

8. “What does your working capital look like as you grow?”

Show how much cash inventory and receivables will lock up at your target revenue, and how you’ll fund it.

9. “When do you reach contribution-positive or break-even?”

Give a specific month in your model and the assumptions that drive it.

10. “What’s your biggest risk, and what’s plan B?”

Investors trust founders who know their weak spots. Name the risk, show its impact in a downside scenario, and explain your response.

How to prepare

1. Build a financial model with clearly stated assumptions.
2. Create downside scenarios for CAC, repeat rate, and sales growth.
3. Prepare a one-page “numbers cheat sheet” with your key metrics.
4. Rehearse with someone who will ask hard questions.

FAQs

What if I don’t know the answer in the meeting?

Say so, and follow up within 24 hours with the number. Guessing is worse than admitting you’ll check.

Should I share my full financial model with investors?

Usually after initial interest, often during diligence. Share a summary first.

How detailed should my answers be?

Lead with the number, then one sentence of context. Offer more detail if they ask.