What to look for in an angel
Angel investors come in many forms, it’s always best to fill your investment round with investors who can assist you the most both now and further down the line.
It seems obvious but there’s more to it than simply investing in this round. You want your angel investor to be able to bring other investors in around them to help you fill your round but also be able to follow their investment in subsequent funding rounds too.
Experience and support
Ideally, you want to look for investors who have many years experience either within your industry or market. They’ll be able to provide key insights and help you navigate the specific challenges that come up as you grow your company. Some may be founders of successful companies, while others could be corporate veterans with deep practical skills and it’s important to consider how both competencies can be helpful.
If a person has both deep industry experience and a few investments under their belt, they’ve likely built up an extensive network of contacts. The ideal investor is one who can make introductions to customers, suppliers, and partners that would otherwise be hard to reach. Take a look through a potential investor’s LinkedIn profile to see who they’re connected to, and whether these contacts could potentially be impactful down the line.
Investors are often called on to help source a big, high-level executive hire and use their pull to bring in an experienced operator as the business grows. However, also consider using your investors in a similar capacity for your early hires. In addition to asking for candidate referrals from their network, consider how a personal phone call from a respected investor may just help sway a key member of staff to come on board.