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How to make your startup more attractive to investors
Welcome to another episode of Funding Simplified, where I simplify the business funding process and share lessons I have learned after being involved in over $500M in debt or equity deals. In today’s episode, I wanted to talk about how to attract angel investors. There are many things that angel investors look for in a startup opportunity. But among those things, there are a few that are more powerful than the others. Here are just three things that can help you attract angel investors. A team Not just any team, but a real experienced team. In fact, if at all possible, having someone on your team that has been in the startup industry for a while and has had success (i.e. has sold a startup before) goes a long way in attracting angel investors. If your team doesn’t have that level of startup experience or any at all, that is ok. Maybe you have a lot of domain or industry experience that you can lean on to help you be successful. One thing I don’t recommend is the lone employee approach. Investors often frown on a lack of teammates. That is because it is unlikely that you can do everything or that you have every skill set needed to successfully run your business. An addressable market Opinions vary on the most common reason startups fail. Reasons like a lack of funding or an inexperienced team are common. Another common reason is that your idea didn’t really have a market to address where there was enough demand. Which is something you should have uncovered in your validation efforts? On the other hand, when you can prove that the market is demanding a solution like your’s and they are willing to pay for it then you are off to a good startup with investors. IP Not every investor requires that a startup they fund has intellectual property. However, the investors I know really well love startups that do have intellectual property protection in place. That is because it makes your startup harder to copy and affords both you and the investor some protection or barriers to entry. For more information on how to attract angel investors check out these free resources.
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By Jonathan Mills PatrickWelcome to another episode of Funding Simplified, where I simplify the business funding process and share lessons I have learned after being involved in over $500M in debt or equity deals. In today’s episode, I wanted to talk about how to attract angel investors. There are many things that angel investors look for in a startup opportunity. But among those things, there are a few that are more powerful than the others. Here are just three things that can help you attract angel investors. A team Not just any team, but a real experienced team. In fact, if at all possible, having someone on your team that has been in the startup industry for a while and has had success (i.e. has sold a startup before) goes a long way in attracting angel investors. If your team doesn’t have that level of startup experience or any at all, that is ok. Maybe you have a lot of domain or industry experience that you can lean on to help you be successful. One thing I don’t recommend is the lone employee approach. Investors often frown on a lack of teammates. That is because it is unlikely that you can do everything or that you have every skill set needed to successfully run your business. An addressable market Opinions vary on the most common reason startups fail. Reasons like a lack of funding or an inexperienced team are common. Another common reason is that your idea didn’t really have a market to address where there was enough demand. Which is something you should have uncovered in your validation efforts? On the other hand, when you can prove that the market is demanding a solution like your’s and they are willing to pay for it then you are off to a good startup with investors. IP Not every investor requires that a startup they fund has intellectual property. However, the investors I know really well love startups that do have intellectual property protection in place. That is because it makes your startup harder to copy and affords both you and the investor some protection or barriers to entry. For more information on how to attract angel investors check out these free resources.