Angels typically receive far more investment propositions than they can possibly invest in. How best to organise effective processes to try and select the most appropriate ones for you to spend time on detailed consideration.
Deal Screening is the first step in the
journey toward finding appropriate investment opportunities. The logistical aspects that go
into determining which investment opportunities would be most suitable to consider in detail are important in ensuring good use of your time and maintaining a good relationship with the entrepreneur and
investor communities. This article outlines
observed and acknowledged practices.
Business Angels reject most opportunities they receive. This article explores the reasons informing such decisions.The findings confirm that the main reason for rejection relates to the entrepreneur/management team.
Oxygen, Aspirin or Jewellery: Which Makes a Better Investment?
Oxygen: Products/Services that people or businesses can’t live without
Aspirin: Products/Services that reduce a major pain but are not critical to survival
Jewellery: Products/Services that are considered luxuries and might be addictive
How big does the market need to be? Established or new- which is best? Both have opportunity and challenges. How do you go about determining the real size of the addressable market for a startup? How do you factor the competition into your overall evaluation of the market opportunity?