Picking the right angel investor is more than just getting the person with the most money to invest. It’s about finding the right fit. To find this person, prepare some questions to ask your angel some questions. Here is a list of a few question we came up with:
- Does the investor have time to offer advice?
- How much time is the investor able to commit to helping the start-up?
- How much capital are they willing to invest?
- How much are they keeping in reserve?
- What is the investor’s experience in the specific industry?
- Have they invested in similar companies before?
- If so, how have they performed?
- Have any of their investments failed?
- Will those past entrepreneurs be willing to provide a reference?
- Besides funding, what value do they add to your team?
Getting angel investments is never an easy task. Angel investors are very thorough; so don’t expect to get your money quickly either. You have to show progress in your company and show that you have a strategy to return meaningful profits. Companies in their start-up stage are often the most risky, so expect angel investors to take their time and do extenstive research into your business model. Be patient. This stage could take several months where they may be meeting with different individuals or groups to address any and all concerns. Show that you are dedicated to your start-up and you have faith in its success.
If you choose the right angel investors, the benefits can go far beyond any monetary value. Their expertise and experience in both business operations and your industry niche become priceless.