Monday 23 November 2015

What Angel Investors look in while evaluating your investment pitch?

When evaluating any investment there are many things to look for with respect to analyst, Angel Investor who is going to invest in your start-ups:

1. Team.
The first thing Angel investor does is to look at the founders and be convinced that they have what it takes to be successful entrepreneurs and can build a business. People are the most important thing in start-ups so team and talent always comes first when deciding -especially for early-stage investments.
                                         



2. Experience.
Alongside talent, experience is the other important thing. Most successful entrepreneurs (against popular belief) are experienced, middle aged people that have done it before and know how to do it. They know the market, how to make products, how to sell them, how to raise money, etc.

3. Idea.
The entrepreneurs need to have an idea for a market that is sufficiently attractive for an investor to make a return. Angel investors need to be convinced that they are proposing to solve a problem that someone today has, that is not being addressed by current products or services, and that it is important enough that people will adopt their product to solve that problem.
                                                  



4. Valuation and Round Size.
The other thing Angel investor does look at is where the company is, and what they are asking for both in terms of total money to raise and valuation?  

5. Who Are The Other Investors?
This shows the ability of the entrepreneurs to attract smart money which is particularly important at the beginning; their criteria when choosing partners, and how much they value to be around good people. It also helps them to validate their thinking about the company, discussing it with other investors they trust and value.

1 comment:

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