About Angel Investors
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Twitter Facebook Google+ LinkedInAngel investors invest in early-stage startup companies in exchange for a stake in the company and understand that startups have a high risk of failure. Ultimately, an angel investor needs to feel confident that the potential upside/rewards from investing are worth the downside risks. What are the essential items angel investors analyze in deciding whether or not to invest in a startup?
- Is there a great founder/management team?
- Is the market opportunity big?
- What positive early traction has the company achieved?
- Are the founders passionate, determined, and in it for the long haul?
- Do the founders understand the financials and key metrics of their business?
- Does the investor know the entrepreneur? If not, has the entrepreneur been referred by a trusted colleague?
- Is the initial investor pitch deck professional and exciting?
- What are the potential risks to the business?
- Why is the company’s product great?
- How will the investment capital be used, and what progress will be made with that capital?
- Does the company have differentiated technology?
- Are the company’s financial projections believable and interesting?
- How will the company market its products or services?
- What are the specific terms and valuation of the financing round?