4 Things Angel Investors Look for in Start-ups

March 3, 2016

  1. Does this business make sense to me?
    I have to understand the business so that it makes sense to me. For example, financial technology is an area where I can make a judgment quickly. There are other hot sectors (green technology, medical technology) where I don’t have experience and it’s more difficult for me to understand their potential. The concept of the business has to give me a good gut instinct.
  2. How close is this idea to having its first paying customer?
    What stage is it in — an idea, prototype, or already in the market. I need to know where my dollar is going. The closer the business is to that first customer, the more likely I would invest.
  3. Do I like/trust the person/people I’m investing in?
    Do they have skill sets, and/or do they have blind spots where others need to be brought into the team.
  4. Do they understand how the business will make money?
    It has to be a well understood financial model.

Matt Given ’92, MBA ’93
Managing Director
Four Points Ventures
Spiro Founder Society Member

Read more: Alum Matt Given invests time, resources to help others succeed

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