One of the questions that often arise with start-ups and newer entrepreneurs is: how do I fund my business and take it to the next level? Often, entrepreneurs start with bootstrapping and using their existing resources, getting seed funding from family and friends, using money from savings or retirement funds, finding loans from a financier, applying for grants (e.g. SBA grants or research grants), and starting with an idea they worked on in their school (e.g. the engineering schools at Stanford are known for producing successful entrepreneurs - think David Packard and Bill Hewlett).

In this episode, I talk to an angel investor, Travis Lindsay, about the factors that angel investors look for in deciding whether to invest in a start-up company. As an angel investor, Travis looks for companies that are further along in their entrepreneurial journey in that these companies - although still in a "start-up" stage - have started to gain traction and momentum towards sustainable growth and profits. He looks for a good idea that addresses customer pain and offers the best solution to alleviating that pain. Other things he looks for are:

1. the legitimate chance that business can grow (i.e. that there is business viability and a business model that can work)

2. traction and momentum 

3. sustained progress (an entrepreneur should not be working on an idea for years without any traction - if an idea does not work, there may be a need to go back to the drawing board and reassess)

4. the ability to take the initial investment and grow 

5. having a good team 

6. some evidence of potential success e.g. having intellectual property, workable prototypes, a safe model that works (e.g. an angel investor will not invest in a medical device or self-driving car that might open the company to liability if it does not work) 

7. continued market testing of the product / service 

8. have a minimum viable product (MVP)

This is a good interview with a lot of practical information for entrepreneurs thinking about their need for funding. 

About Travis

Travis is an adjunct professor of entrepreneurship at Cal State Fullerton. He is an experienced educator, mentor, coach, and investor.  At California State University, Fullerton, Travis has been a driving force in the growth of the Center for Entrepreneurship and the founding of the university's first incubator, the CSUF Startup Incubator. Additionally, Travis is a founder and co-manager of Titan Angels, LLC, an investment fund that invests in early-stage companies.

Travis' passion is in educating and mentoring the next generation of business leaders. At California State University, Fullerton, Travis has worked with hundreds of students and community members, in and out of the classroom, providing feedback in all areas of business, including help with pro forma financial forecasting, integrated marketing plans, development of operational strategies, and more. At Titan Angels, Travis provides incisive feedback to founders that they use to better position themselves in the market. 

How to reach Travis:

1. By email: [email protected]

2. Travis's Linkedin Profile