Angel investors have unique expectations when they invest in startups.

1. Financial Returns

• Typically seek a return of 3-5 times their investment within 5-7 years.
• Expect a higher rate of return than traditional investments due to the higher risk involved.

2. Business Model Validation

• Want to see a clear and robust business model.
• Expect evidence of market research and validation of the product or service.

3. Strong Management Team

• Prefer businesses with a skilled and experienced management team.
• Look for commitment and passion from founders.

4. Exit Strategy

• Expect a feasible exit strategy within a defined time frame.
• Inquire about potential acquisition or IPO opportunities.

5. Networking Opportunities

• Look for ways to leverage their own networks to benefit the startup.
• Expect mentorship roles which lead to future business opportunities.

6. Due Diligence Process

• Engage in a thorough due diligence process before making an investment.
• Review financial statements, legal standing, and market potential.

7. Reporting and Communication

• Expect regular updates on the company’s performance.
• Look for transparent communication about challenges and opportunities.

Typical Expectations of an Angel Investor

Mind Map of Angel Investor Expectations

• Financial Returns
  • High return on investment
  • Risk vs. reward analysis
• Business Model Validation
  • Market research
  • Proven concept
• Strong Management Team
  • Experienced leaders
  • Passionate founders
• Exit Strategy
  • Acquisition possibilities
  • IPO potential
• Networking Opportunities
  • Mentorship roles
  • Networking for growth
• Due Diligence Process
  • Analysis of business plans
  • Risk assessment
• Reporting and Communication
  • Regular updates
  • Transparency in operations

Statistics on Angel Investments