Are you ready for funding?
While the merits of each investment vary, angel group members will evaluate your company according to the following criteria:
Management team: Is your team experienced, driven, coachable and comfortable receiving input from your Angel investors? Ideally, we look for teams of high-quality entrepreneurs with a track record of leadership and performance either in your venture’s industry or in prior start-ups.
Market opportunity: We like to invest in solutions to major problems for large target markets (several hundred million dollars or larger), and with a strategy to capture a significant share (20% +) of that market.
Competitive advantage: Have you identified potential competitors? What barriers to entry exist that will let maintain your competitive advantage? We like to see strong proprietary features that truly differentiate you from the competition.
Technology: Have you proven the concept behind your product or technology? Can this be confirmed by with data or by objective experts? Do you understand how best to commercialize the technology?
Intellectual property: Have you protected your IP? Have you conducted an exhaustive search to ensure you’re not infringing on patents or trademarks held by others? We prefer companies with strong IP that can be defended.
Strategy: Do you have a business plan that maps out the sales strategy to achieve commercialization and widespread market penetration of your product, technology or service? We look for companies that can grow quickly and manage the scale necessary to succeed. We also look for well-conceived financial projections, based on sound and testable assumptions, that demonstrate high margins and consistent revenue, cash flow and profit growth.
Capital needs/Use of funds: Are you seeking funding to finance growth activities, such as product development or further research, hiring key staff, or building marketing and sales infrastructure. Typically, we are prepared to invest from $50,000 to $750,000 to fund such activities.
Exit strategy: Do you have a clear exit strategy(ies) that will let your angel investors generate returns of at least 10 times their initial investment within five to eight years?