SIL — Picking Winning Startups
The most challenging part about being an angel investor is to pick out the winners. This is the part that will have the long term effect on the company’s returns, which is picking up the right companies and startups, but this is the hardest part.
Central issue is short listing the right candidates. On the other hand, for startups the issue is giving people something extraordinary which they want. So how would you do it if you were an angel investor? It is not just as easy as going for those companies that are already in the process of producing something wildly popular.
If you wait for something big from a startup to happen it might be too late because lots of VCs are already looking for promising startups. A smart angel is that one which is able to recognize talent even before it has unleashed its full potential.
An eye for talent is what makes an ideal angel just like Singapore Innovation League. The league is being led by Niraj Goel, who always had a knack for promising business ideas.
As an angel you have to pick those company before they have made a big hit may be because they did something but people haven’t realized it yet, like Google on its early days or because it is a step or two away from achieving a big hit.