My partner says that if investor come and ask whether we have other businesses I should say no.
However, I find it strange
What do you think?
First, lying isn't the best policy. If investor(s) discover the truth, your credibility is shot, and investors do exchange notes (check with each other). Your reputation will either be an asset or liability.
Having other businesses isn't a bad thing if the other businesses are staffed with the right people and growing — in short, your role is either as investor or member of board of directors. On the other hand, having other businesses are bad if they're struggling because your time and attention may be needed.
Answer depends on what stage your current business is at and how it is executing against its business plan.
Global nomad has a great answer. In addition, investors will want assurance that your other business will not be a source of competition or divert important resources away from your primary venture.
It is reasonable for the investor to require a non-competition/solicitation provision as part of their agreement.
All things being equal, investors may prefer that you are 100% focused on their investment. That said, it is not worth lying about.
I would think so, they figure you are then more distracted and not 110% focused on the business they are investing their hard-earned money in.
I always try to put myself in the investors shoes, I'd recommend it for you as well.