Ask Yourself These 5 Things Before You Seek Angel Investment
Are you thinking about seeking angel investment for your small business or startup? The first step should always be looking at whether or not your business is a good candidate. Many really good businesses are not attractive to angel investors. It’s not as simple as growth or profits.
The truth is that the vast majority of potentially successful small businesses and startups are not going to get angel investment no matter how good their pitch or plan. Simply having a good business that can grow and prosper isn’t enough.
So what is? How do you catch an angel’s eye?
Here are five questions that will help you figure out whether your business is likely to be interesting to angel investors.
1. Does your business have major growth potential?
Angel investors look for businesses that can increase sales tenfold or more over the next three years. They don’t want to share in your profits; they want your company to go public or sell to a larger company. It’s how they make their money.
That takes major growth. So you need a big market. That means not just numbers in spreadsheets, but a market that the investors themselves will believe in. Angel investors want businesses that solve real problems…
