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<h1 class="title">What to look for in an Angel deal</h1>
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<div><div class="collapse-text-text collapsed-text"><p>There are many approaches for selecting the right deal and below we give you some tips based on the experience of angel investors. For many investors looking at a start-up or early stage business,<em><strong> <span style="color:rgb(55, 0, 52)">the People</span></strong></em>, i.e. capacity and experience of the entrepreneur and management team, have been shown to be the most significant aspect for Angel investors when deciding to make an investment. However, you should of course also look carefully at <span style="color:rgb(55, 0, 52)"><strong><em>the Project </em></strong></span>i.e. the business itself, before <em><strong><span style="color:rgb(55, 0, 52)">Negotiating the De</span><span style="color:rgb(55, 0, 52)">al</span></strong></em>. The following are some important issues to consider.<br/>
</div><fieldset class="collapse-text-fieldset collapsed-text-fieldset collapsible collapsed"><legend>Read more</legend><div class="collapse-text-text collapsed-text">
<p><span style="color:rgb(55, 0, 52)"><strong><em>The People!</em> </strong></span></p>
<ul>
<li>
What is the experience and skill of the entrepreneur and team and what does this bring to the business?</li>
<li>
What other achievements have they had in their past career (academic and business) that bring value to the current business.</li>
<li>
Do they have the drive and passion to deal with the ups and downs of running an early stage business and to devote all the time and energy that is needed.</li>
<li>
Do they seem hungry to make a big capital gain in medium term.</li>
<li>
Do they have the business skills and understanding to execute business plan to take the company through to high growth? </li>
<li>
Can they sell the project to you are they able to communicate the opportunity to you so that you can feel assured they can sell the product/technology to key customers?</li>
<li>
What skills are currently missing in the team and where you can add value to the team, this does not need to be a complete team at this stage, but they should be aware of what they other experience and skills they lack- this can form part of the investment proposal.</li>
</ul>
<p>For further information, <a href="http://www.bbaa.org.uk/sites/default/files/media/files/people_and_management.pdf">CLICK HERE</a> to download a Due Diligence fact sheet on the Management Team.</p>
<p><br/>
<span style="color:rgb(55, 0, 52)"><strong><em>The Project:</em></strong></span></p>
<ul>
<li>
Does the product, technology or service address a real challenge in the market or society- what is the pain they are solving?</li>
<li>
Is it likely to be disruptive and make a real impact in the marketplace or establish a new niche?</li>
<li>
Does the product or technology have identifiable Intellectual Property? This may be patentable or may in the form of copyright or branding or other intangibles and who owns this?</li>
<li>
What is their defensible market position? What other businesses are in competition with this project? How does it compare and what is the unique selling point or advantage, or does it have first mover advantage?</li>
<li>
How does the business make money? Are there clear identifiable revenue streams? Are there likely to be good gross/net margins?</li>
<li>
How scalable is this business model to achieve explosive growth?</li>
<li>
What kind of validation have they had in the market place? If already selling or has this been tested out with potential customers? Can they show results of market testing/surveys?</li>
<li>
What is the market size and realistic potential market share?</li>
<li>
Is the deal EIS /SEIS eligible and do they have advanced clearance?</li>
<li>
Do they have a desire and strategy for exit? Or is it a lifestyle business/ with no exit potential?</li>
</ul>
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