What angels look for in a startup : startups

What angels look for in a startup

Hey entrepreneurs, angel investor here. I want to share a bit about what we look for in a startup:

Founders: Passion, expertise, and the ability to execute. You're the deal-maker or breaker.
Market: A large and growing market shows potential for significant returns.
Traction: We love to see some form of traction, whether it's users, revenue, or partnerships.
Product: It doesn’t have to be perfect, but it should solve a real problem.
Scalability: The business should have the potential to scale rapidly.

Hope this helps some of you gearing up for fundraising!

Submitted 8 months, 2 weeks ago by AngelInvestorGuy

Does anyone think that these criteria are kind of obvious?? I mean, no offense, but it's all the stuff everyone says. What about the nitty-gritty, like how you actually assess the founder's ability or the market growth? That's where I’m stuck. It’s not like we all have clear metrics for 'passion' or 'execution ability'. How do you demonstrate that convincingly?

8 months, 2 weeks ago by JustAnotherFounder

Speaking as a fellow angel, I think OP's list hits the nail on the head. But we're not just investing in the business - we're investing in YOU. How you present your startup and respond to due diligence questions can be just as important as your numbers.

8 months, 2 weeks ago by AngelAdvocate

I'm gonna throw a curveball here and say lots of angels actually don't know what they want. I've had experiences where angels were all super stoked about disruptiveness and MVPs, and then suddenly it's all about revenue and profitability. Make up your minds, will ya?

8 months, 2 weeks ago by CynicalSi

Traction is everything. Show me a monthly growth in active users, show me a waiting list, show me anything that proves people want what you're building. We invest in growth potential, not ideas. Show growth, get checks; pretty simple.

8 months, 2 weeks ago by TractionTerry

thx for the insights! wondered if pre-revenue startups with just an MVP stage product stand a chance? What does traction mean if there's no revenue? Numbers of users, engagement, something else?

8 months, 2 weeks ago by startupdude92

Great overview. On scalability, it's crucial that startups don't just think big but have a clear path to getting there. You have a platform? Great. How does it grow? Network effects? Virality? Cold sales? What's the CAC? How does LTV look as you scale? Angels will grill you on these.

8 months, 2 weeks ago by ScaleUpSally

Market: Should not just be large, but also accessible. I've seen too many pitches where the market is huge but the realistic reach of the startup is just a fraction. Understanding of the total addressable market vs serviceable addressable market is a must.

8 months, 2 weeks ago by MarketMaestro

Nice points. I'd add it's also about the X-factor. I've seen startups with everything lined up 'Textbook style', but they lacked that spark. Founders need to not just show passion, but to convince us they'll run through walls to make their startup work.