Venture Financing:

Business Angels

Tips for Business Angels

Search for Investment Opportunities

Partially adapted from "Angel Investing", by Osnabrugge, M.V. and Robinson, R.J.

Setting Your Investment Criteria

(questions to ask yourself before starting the search process):

  • Overall, how willing am I to invest in business angel deals?

  • How many angel investments do I want to make in total? How much money am I willing to risk per deal?

  • In what industry sector(s) am I most experienced and most comfortable investing?

  • How far am I willing to travel to help my investment?

  • Am I more comfortable investing with others, or by myself?

  • Realistically, what potential returns am I looking for in an investment deal?

  • What basic characteristics am I looking for in the entrepreneur? the product? the target market? the overall business plan?

  • Which issues are most important to me, and which am I willing to compromise on?

Starting Your Search

  • Which of my personal friends or business associates might have the network contacts to help me find some potentially attractive angel opportunities?

  • Should I try to join an angel syndicate so that I can co-invest with others?

  • What do other investors in the area have to say about these services?

  • What aspects of the search do I really need help and guidance with?

  • Rather than waiting to find a suitable early stage firm, are there any impressive young ventures in the area that I may want to approach with an unsolicited offer for funding?

Screening Investment Opportunities

  • Who referred this opportunity to me? Do I fully trust their recommendations?

  • Do I understand and have experience in this industry sector?

  • What makes this investment opportunity unique among all the others?

  • What kind of investment return can I realistically expect to receive?

  • How much money are the entrepreneurs looking for? How much equity are they willing to surrender in return?

  • What are the most likely exit routes for this investment opportunity?

  • Overall, does this investment opportunity fit well with my investment criteria?

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