Kyle Murphy is a Technology CEO and investor. In this video he discusses the goals of an angel investor for a startup.
- Looking for a good idea
- Clear path to the next milestone
- Logical exit
The angel perspective is different from the VC and even to n entrepreneur. And I’ve been in all three. So, I think I bring in a new perspective here. But for the angel investor, there’s really three things I’m looking for or goals when I’m investing in a company that start up.
One is I want a really great idea. And what is a great idea? One that can improve exponentially something or problem and identify them in the industry. And it’s an industry that is open to change. You know, be a major behavioral changes or huge expenses to make that change.
Next is I want a clear path to the next milestone. Normally, what major investor means is the next round of funding. So, I want to go, if we’re going to put in a half a million now, what is it going to get us to? What it will take to get there? What are the risks of getting there for the next milestone?
And then then the last piece is I want a logical exit. Everyone likes to say we could be an IPO. Well, I know that is but what happens if you don’t make it to the 25 or 50 or 100 million dollar company? What is after you just make a 10 million dollar company? Is there a market for $10,000,000 type of company like yours in MNA or for profit and then you can return, you know, our investments through dividends. But give me other options based on comparable in the market.
So, angel inventors is really different to other ones and they are really looking for that idea and what you’re going to do on that money now to make successful to make it in that next, you know, milestone.