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 before investing?
Expect investors to evaluate your revenue streams, acquisition cost and turnover rates.
- Background and experience in the industry. Investors don’t want entrepreneurs to make mistakes on their dime.
- Company uniqueness. Your product or services need to be unique.
- Effective business model.
- Large market size.
What do investors want from startups?
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 angel investors look for in a startup?
Angels seek out startups whose leadership operates with grit, determination and resilience. Solid startups understand the need for monetization but do not sacrifice the integrity of their vision, product, service or company.
What ROI do investors look for?
The bigger the better. In general, angel investors expect to get their money back within 5 to 7 years with an annualized internal rate of return (“IRR”) of 20% to 40%. Venture capital funds strive for the higher end of this range or more.