Thoughts on Investments
While many of us think of startup investment as a specialist game reserved for a select few with expertise or experience, I believe it can be honed with a few guiding principles.
Generally, any investment is done for Returns with an assumed time period . Specifically, deciding to invest during the Angel round of Investment means the Venture has repeatable customer and Revenue that is capable of growth. To qualify this further, this revenue is because the price/value of Product / Service is acceptable to Customers.
This being understood, the decision to invest is made on few known parameters
1.Ability of Entrepreneur to stitch a story of how they identified the problem and the approach he has taken to provide solution
2.Detailed presentation of metrics he collected to prove his story
3.Understanding of which domain his solution fits into
4.Understanding of why the early customers believe in his solution
5.Understanding how the Angel round will help him to scale
6.Understanding of the Compliance environment and how this impacts his business .
7.Who are the competitors and their understanding
8.Ownership structure of existing shareholders and investors
9.Background of the Entrepreneur
10.Openness for change
It is interesting to look back and note how my early professional experience and the potential to identify opportunities culminated into making me a professional entrepreneur. The urge to be different from the crowd helped in making a difference personally, in my organization, and with the people around me.
The growth of the entrepreneurial network led to meeting different groups of people with varied business interests. I understood the constraints, challenges and opportunities of business problems as I was an avid listener with an open mind. In addition to the ability to think through and provide solutions, I developed the art of articulating an experience based narrative to communicate to a larger audience.