What to Ask When Screening a Company
During the screening process, a few angels look through the information submitted in the application. The answers they are looking for should be found in the company’s pitch. Their questions include:
• What is the problem being solved?
• What is the solution to the problem?
• Who has the problem (i.e., who is the target client base and market opportunity)?
• What is the current solution being used without this company?
• How will the product or service be marketed?
• How will the company make money?
• Who makes up the team executing the product or service?
• How much money is being looked for now? In the future?
• How will investors make a return?
• Why should angels invest?
If these questions are answered adequately, the company moves to the next phase, where all the members of the angel group take a look and investment interest is gauged. The process of figuring out who might invest is informal. Some groups raise hands if they are in a live meeting, or email/ballots can be used. If there is a certain level of interest, then a deeper dive on the details, called due diligence, begins.
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