What makes a good angel investor?
In its simplest form the best angels are the ones who make the most money from their investment and the highest returns from the money they invested. However this is far harder said than done. Most start-ups that already exist and are making a product or service that is in high demand will no longer require seed funding, and will already be in VC territory.
I personally use a very simple rule to pick companies to invest in, the rule is as follows: Pick a start-up that makes or provides things that people have an existing need for. Most investors dream of finding the next Facebook and I am sure in the future someone will get lucky but if you want to dramatically increase your odds of making money then you need to invest in a start-up that supports a need rather than one that has to worry about creating a need before it can even think about supporting it.
Aside from the amount that is invested, what separates and angel from a VC is that at angel is trying to spot a business’s potential before it has taken off where are as a VC wants the potential to be proven before investment. Please don’t misunderstand me, both are looking at existing and future potential but as an angel there is usually a lot less to go on and investments need to be made before a product has chance to really rock and roll.
If you think that you have a start-up that fits into the angel funding category, please use the contact me tab to have a confidential discussion.