What Angel Investors Look For In A Startup?

A Solid Business Plan: Angel investors want to see a business plan that’s both convincing and complete, including financial projections, detailed marketing plans, and specifics about a target market.

They want to see a developed vision that includes details of how to grow the business and remain competitive.

What investors look for in a startup?

The Market

Investors want to have a deeper look at your market. They want to see the potential of growth in the existing market and if your startup has the resources to accommodate a new growing market. The bigger the obtainable market size, the more is the chances to get benefit from economies of scale in the future.

What percentage do angel investors want?

Angel investors typically want from 20 to 25 percent return on the money they invest in your company. Venture capitalists may take even more; if the product is still in development, for example, an investor may want 40 percent of the business to compensate for the high risk it is taking.

Why do angel investors invest in startups?

The reasons for angel investing vary by investor. Some angel investors look at angel investing as a way to diversify their portfolio to include a high risk, high return asset class. Some angel investors just want to give back to entrepreneurs and support the teams, companies, and missions in which they believe.

How do you prepare for an angel investor meeting?

Angel Investors: 16 Things Startups Must Know and Prepare Before Meeting

  • Understand the Role of the Angel Investor.
  • Form a Delaware C Corporation.
  • Review the SEC Registration Requirements.
  • Protect Your Intellectual Property.
  • Decide How You’ll Raise Funds.
  • Know Your Business Phase.
  • Prepare Your Presentation.
  • Work With Advisors.