According to a report, $173 million were raised in Pre-Series A and angel rounds in 2018 by Indian startups.
While the number of deals and the amount invested may have decreased from 2015 to 2018, the hands-on experience and access to a network still make angel investors invaluable for a startup.
What Angel Investor Looks Before Investing?
For a young start-up, it is very tough to get an Angel investment as it takes a lot of research before going for investment, a pitch deck to showcase, marketing plans and what not.
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- Target Market
The very first question every Angel Investor asks it how wide is your target market, for whom it is beneficial.
A complete demographics and geographics of the targeted market. It not only includes the current scope of the market but also future expansion.
Remember if your business is targeting the existing market then be prepared for the question like how much your platform/offerings are different from your competitors and why people will choose you over existing big players in the market.
- Team Strength
An angel investor always how much is your team is capable and what are the key strengths and weaknesses of the team.
The team behind the startup is going to define the future of the startup and team is the one who takes all the important decision that will push a company one way or the other, thus there is a lot of importance that investors put on teams and founders.
Most Common Questions Investors Have:
What is the core expertise of the team?
Relations and coordination among the team?
Experience of the team and founders?
You need to make your team very strong so as to impress investors because the team is the one which describes the future of the company.
It’s very difficult for an investor to judge a product by its working prototype.
You need to give the investor some reliable metrics on what customers are thinking about your product, market analysis, feedback, surveys.
Traction is a very important factor, how the customer is engaging with the startup with real metrics gives a rough idea to an investor of its future scope and scalability of the business.
- USP of the StartUp:
Every successful startup has some unique offering to the customer which is known as Unique Selling Point(USP) of the product.
You need to mention what’s the USP of the product and why is different from the competitors and what value is it giving to the customers.