Are you looking for funding? Angel investing has grown in the last few years as people look for better returns on their money than they might get from traditional investment tactics. Angel investors are usually willing to accept a certain amount of risk and often do not demand much control. Their ultimate goal is to have a chance to own a part of a business that they hope will be valuable or solve a problem.
According to data from a recently released survey by Propel(x), an online investment platform, the top three factors that influence an angel investor to back a company are:
- Confidence in the management team
- Understanding of the product or service they will be investing in
- Investment decisions are driven by identifying technology or other types of products that will solve some of the world’s problems
If your business decides to pitch your product or solution to an angel investor be sure to highlight your management team and tell your company story so that potential investors really get to know the team. Use creative ways to demonstrate and educate investors on what innovations your company offers, as well as what your business plan and financial projections are for your market.
Angel investors are often looking for projects that align with personal passion. Angel investors will also conduct their due diligence prior to investing in a company which can run the gamut from any legal issues, the market size, the competitive landscape, ROI, and examining your specific business model.
Your company also needs to vet potential investors before accepting funds so that you understand how past relationships have worked. If you are not sure where to start when vetting a potential investor Access/Information can help you.