• Colby Lepore

What are some of the questions that an angel investor will ask when looking at a business proposal?

Updated: Jan 5

(Answer requested by Siva K.)


Siva,

Generally, investors tend to look at three things when making decisions:


-Product

-Market

-Team


Some investors value one trait over the rest, but as a general rule, almost all angel investors will look at these three areas.


You should research the investor you are meeting with and learn everything you can about them.


What have they previously invested in?


At what stage did they invest?


What kind of founder did they back?


I can’t tell you what questions will be asked, but I can guarantee the questions will revolve around your startup's product, market, and team.


Additionally, you should prepare for an investor meeting by objectively looking at your startup, and asking: What are the greatest risks to my startup failing?


Your goal is to de-risk your venture to the point where it makes sense for an investor to cut you a check.


Think about risk like an onion; each layer is less chance you get funded.


You want to have as few layers as possible.


You can’t de-risk anything entirely, but you should have answers prepared that explain how you are going to mitigate/overcome obstacles that threaten your startup's success.


Don’t try to hide the risks, explain how you will beat the odds and overcome them.


Don’t try to guess the questions; know your business.

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