What angel investors invest in first?

At the beginning of your journey, you are looking for the right investment to cultivate your start-up. My personal recommendation is to delay this investment as much as possible or even avoid it if possible. It’s better to wait for investors to come to you.

However, if you still need an angel investment no matter what, you should know how angel investors usually think. These are not applicable for everyone for sure and you can consider them as general advice as a starting point.

An angel investor invests in the following with the listed priority:

1. Founder(s): Especially in early stages, the founders themselves are the most important assurance. For this reason, my recommendation is to seek angel investment from friends and family as much as possible. If you are not a “famous” founder or if you don’t have a proven track record, getting an investment from professional institutions is a burdensome process with a low possibility of occurrence. You should seek people who trusts you for who you are. A close friend or a relative is the best bet.

2. Team: If you are a single founder, you are a risky investment from the investors’ point of view. You may get bored, shift your motivation to something else or something negative may happen, etc. For this reason, you should have a trusted, fully dedicated team of founders from various disciplines (minimum 2, more is better) to gain the investors’ trust.

3. Idea: You might have the greatest idea but there are many people around with great ideas. The main issue is to have this idea proven, which might take time. A mediocre idea can be highly successful in the hands of a great entrepreneur or a great idea can fail in the hands of a mediocre entrepreneur.

I respect most the entrepreneurs who become their own angel investors with little in hand.