What does a Venture Capitalist (Angel Investor) Really Want to Know?

 

Management Team

• Has the management team done this before?
• Have they made money for other investors?
• Do they work well with others (like investors)?
• Do they seem skilled and flexible?
• Is there clear leadership of the team?

 

Market Opportunity

• What is the value proposition?
• What is the industry structure?
• How large is the market?
• What is the stage of the market?
• What is the real potential for market share?
• What are the barriers to entry?
• What are the future opportunities?

 

Competitive Advantage

• Is there proprietary technology?
• How secure is the IP?
• Are there other advantages: skill, knowledge, relationships, etc.?
• How will the company compete?
• Is this more than a "one-trick pony"?

 

The Deal

• How much money is really needed? When, and for what?
• Is the entrepreneur’s valuation of the business reasonable?
• What is the exit strategy?
• Will this fit with the investors’ needs to make approximately ten times their money in three to five years?